Chapter X: Technical Analysis discovers the range of moods of investors toward T. |
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| Negative Volume Index (NVI) is a traditional Sentiment Indicator for AT and T. This modern version makes use of several enhancements added by Norman Fosback. The indicator is the proportion of the daily NVI as compared to the average daily NVI over the past year. The plot is orange below the unity line (neutral implication) and green above (bullish). |
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How to read the Calibrated NVI for AT and T: The NVI is an elegant indicator based on sound principles but it should not be interpreted in a simplistic manner. 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". |
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| The NVI resembles a fundamental indicator more than a technical indicator in at least one respect, as it seems to be indicative over a span of months or quarters, rather then the extremely short predictive span typical of many technical signals. This chart for AT and T covers the few years before the start of the chart at the top of the page. |
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| Weekly average closing altitude was 33.16 percent for the week ending 1/29/2010. Past values of the Closing Altitude indicator are marked by the blue line. 50 percent closing altitude is marked as the midline. 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 T while traces below the midline are a sign that speculators are afraid to hold on to the issue overnight. The latest data indicates a downward trend, with a slope of -3.29. AT and T stock prices are shown in red. |
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| The Volume Portion is low for the latest data at 0.32. Here the blue indicates the proportion between Up Volume and Down Volume. Again, the horizontal blue line represents the neutral point. AT and T 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 -0.40. |
Influence of Investor Sentiment on T stock prices. Also, roadmap and Summary of most effective indicators: |
| Friday, February 05, 2010: We have news on Genzyme Corporation, ticker symbol GENZ. A significant moving average event has happened. Also, there are breaking events concerning Archer-Daniels-Midland and Pactiv Corporation. From the News Archive: (2/5/2010 ) Favorable events happened at Wells Fargo & Company, Marathon Oil Corporation, Dell Inc., and Principal Financial Group, Inc.. |