Chapter X: Technical Analysis discovers the range of moods of investors toward MSFT. |
| Prev. Co. | Next Co. | |
|
| ||
| A well known sentiment indicator is the NVI or Negative Volume Index for MicroSoft. This modern version makes use of several enhancements suggested by Norman Fosback. The plot is the proportion of the daily NVI as compared to the past year's average daily NVI. The plot is orange below the unity line (neutral implication) and green above (bullish). |
|
How to read the Calibrated NVI for MicroSoft: In its modern form, the NVI is an elegant indicator, but requires some care in interpretation. The orange plot (NVI less than unity) is not considered bearish because a lowering of the NVI is a natural tendancy under many market conditions. When the plot is in the green area, it indicates that prices are rising on low volume sessions, which is contrary to the normal condition. This can be a tip off to "accumulation behaviour" on the part of someone or some group in the market. The indicator seems most significant when prices are falling and the NVI is rising, which indicates a market that is "buying on the dips". |
| Prev. Co. | Next Co. | |
| ||
| Because the NVI operates over a somewhat longer time frame than most technical indicators, it is of interest to track it over a longer period to get a feeling for how it works. This chart for MicroSoft covers the few years before the start of the chart at the top of the page. |
| Prev. Co. | Next Co. | |
| ||
| Weekly average closing altitude was 42.35 percent for the week ending 6/26/2009. Past values of the Closing Altitude indicator are marked by the blue line. The midline represents the 50 percent closing altitude. It indicates closing prices halfway between the high and low prices for the day. Values above the midline indicate that day traders have positive feelings toward MSFT while traces below the midline are a sign that speculators are afraid to hold on to the issue overnight. The short-term trend is positive, with a slope of 11.58. MicroSoft stock prices are shown in red. |
| Prev. Co. | Next Co. | |
| ||
| The Volume Portion is low for the latest data at 0.64. Here the blue indicates the proportion between Up Volume and Down Volume. Again, the horizontal blue line represents the neutral point. MicroSoft share prices are overlaid in red. This is an important indicator for market timing, as a change in direction of the volume line may happen before the price turns.Short term, the slope of this indicator is negative at -0.00. |
Influence of Investor Sentiment on MSFT stock prices. Also, roadmap and Summary of most effective indicators: |
| In the news, Wednesday, July 01, 2009: An unfavorable condition has developed with Lexmark International, Inc., ticker symbol LXK. Also, there are breaking events concerning Lennar Corporation (LEN) and The Travelers Companies, Inc. (TRV) |