Tenaris S.A. (TS) Closes Above Its Parabolic SAR

Shares of Tenaris S.A. (TS) are on watch as they closed the most recent session above the Parabolic SAR line.  The current level of the shares currently stands at 27.81 at the time of writing. 

SAR stands for stop and reverse and it is a trend following indicator, designed to identify the turning point in price action. The parabolic SAR is shown on the charts as a series of small ‘dots’ that are placed either above or below the price. When the price is trending to the upside, the dots are below the price action and when the price is trending to the downside, the dots are above the price action.

When the share price closes above the upper Parabolic SAR, a trader could interpret a buy signal. The Parabolic SAR will move from being above price to below price and the trader would cover any existing short positions and reverse direction and buy long.

When the price closes below the lower Parabolic SAR, a trader could interpret a sell signal. The Parabolic SAR will move from being below price to above price and the trader would sell any existing long positions and reverse direction and go short.

Even though the stock market has been cranking along and touching record highs, there are bound to be some rough patches in the near future. Some investors may actually welcome a pullback in order to scoop up some stocks at a relative discount. Investors who are on top of things are most likely ready to spring when the next big buying opportunity pops up. Being prepared for a buying opportunity can make the process much easier when the time comes. As investors look ahead to the next round of company earnings reports, the focus may gravitate to those companies that have positioned themselves for sustained future growth. Many investors will be closely monitoring which companies outperform by the largest margin after earnings results are released.

After a recent look, Tenaris S.A. (TS) has a 50-day Moving Average of 28.01, the 200-day Moving Average is 28.41, and the 7-day is noted at 27.01. A popular tool among technical stock analysts is the moving average. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a specific period of time. Moving averages can be very useful for identifying peaks and troughs. They may also be used to help the trader figure out proper support and resistance levels for the stock.

Traders may be relying in part on technical stock analysis. Tenaris S.A. (TS) currently has a 14-day Commodity Channel Index (CCI) of 126.46. Despite the name, CCI can be used on other investment tools such as stocks. The CCI was designed to typically stay within the reading of -100 to +100. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction. On the other hand, a reading of -100 would imply that the stock is oversold and possibly set for a rally.

At the time of writing, the 14-day ADX for Tenaris S.A. (TS) is 18.67. Many technical chart analysts believe that an ADX value over 25 would suggest a strong trend. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal. The ADX is typically plotted along with two other directional movement indicator lines, the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI). Some analysts believe that the ADX is one of the best trend strength indicators available.

The Relative Strength Index (RSI) is one of multiple popular technical indicators created by J. Welles Wilder. Wilder introduced RSI in his book “New Concepts in Technical Trading Systems” which was published in 1978. RSI measures the magnitude and velocity of directional price movements. The data is represented graphically by fluctuating between a value of 0 and 100. The indicator is computed by using the average losses and gains of a stock over a certain time period. RSI can be used to help spot overbought or oversold conditions. An RSI reading over 70 would be considered overbought, and a reading under 30 would indicate oversold conditions. A level of 50 would indicate neutral market momentum. The 14-day RSI is currently sitting at 52.39, the 7-day is at 60.60, and the 3-day is spotted at 77.40 for Tenaris S.A. (TS).

Making the tough buy or sell portfolio decisions is a typical challenge that most investors will eventually face. Trying to separate fact from emotion when making these decisions can be hard. It may be very difficult to part ways with a previously prized stock. Investors may have a checklist that includes certain criteria for portfolio evaluation purposes. When certain stocks no longer meet the guidelines, they may need to be cut loose. This is often easier said than done, especially when a stock has provided a large boost to the portfolio in the past. Investors who are able to successfully keep emotional attachment out of the stock picking process may give themselves a leg up compared to those who are not.  

Just-released report names Cannabis Stock of the Year for 2019! Their last pick has seen a +1,200% return since he released it!

This stock has all of the makings of the next great cannabis stock – early-mover advantage, international exposure and influential partnerships, plus it has a product that is unlike anything else on the market…

You will also receive a free, weekly newsletter to stay on top of the latest industry trends, read analysis on promising cannabis stocks, and more. Click here to receive your Free Report immediately!

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.