Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Currently, McCormick stock matches one trading strategy:
McCormick stock continues to trend higher since in late March and marked an amazing 66.92% gain. Price marked a pull back in this uptrend at $164.48 on June 15, and since then it bounced up a 13.03%. Price just broke out above the entry point at $179.76, but it can be traded. If price goes above $188.75, don't chase the price and wait for the following entry point. If you decide to enter this trade, the suggested stop loss is at $161.78
|Buy setup||Buy point||Stop loss||Risk|
|Uptrend buy setup||$179.76||$161.78||10%|
When you are a novel trader and you own stock shares with some profit, it's really difficult to decide the best moment to sell and get your profits. As when we have to buy shares, deciding when is the best time to sell is not a whimsical decision, and we must adhere our own trading style. When selling, as well as buying, detailed strategies are very easy to use but are only applicable for selling shares you already own, not for selling short MKC stock
A golden rule is that you must never mantain an open trade that produces losses greater than those expected upon the buy. The moment to sell your stock must always be ruled by the stop-loss (automatic or manual)
In the current situation of McCormick there is not any eligible sell setup, so McCormick stock holders with operations in profit can keep their positions
Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal
In the last month, 2 ratings were published for McCormick
|Jun 22nd, 2020|
|Jefferies Financial Group||Sell → Neutral|
|Jun 26th, 2020|
Since in late March, McCormick has been drawing an uptrend that so far marked an amazing 66.92%. The price action shows higher peaks and troughs, and along the way provided very few entry points for those who wanted to enter. Latest low was on June 15, when price bounced at $164.48. McCormick broke out above $179.76 (its last top) on July 2. That breakout was a good buying opportunity
Yesterday, McCormick reached new all-time highs (ATH) again at $186.10. Stock surged fast in the last 2 weeks, hiting new all-time highs 3 times
A favorite tool of many trading systems are the moving averages, that easily show market momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days. Learn more about Moving Averages from sources like Wikipedia and Investopedia
Investors use support and resistance levels as a way to spot price points in the stock price action that may behave as barriers, preventing the price of a stock to move up or down. Supports are levels where the price may stop as it falls. Price is more likely to "rebound" this level rather than break through it. However, if the price breaks down this level, it will probably continue descending until approaching another support level. On the contrary, a resistance level is where the price may find opposition as it moves up. Likewise, this means that the price is more liable to "rebound" at this level, and if it finally ruptures this level, the price will rally easily until it finds the next resistance
Price is at highs and there are not upper resistances.
The current support levels are:
The so-called Bollinger bands are a well-established studio created by John Bollinger. Essentially, the Bollinger Bands are bands that flow around a moving average and vary the distance from the bottom to the top depending on market volatility. They are usually drawn by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20
The price is trading very close to the upper Bollinger band, indicating some level of overbought in recent sessions. This is not a bearish indicator, as price can trade in these levels for many days and weeks
The Relative Strength Index is an oscillator-type indicator that track price movements to identify when the price of a share or financial asset is oversold or overbought. Like other oscillation indicators, the RSI moves in a range between 0% and 100%. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in 1978
Relative Strength Indicator crossed over the 70 level yesterday, marking a value of 73.4. The fact that the Relative Strength Indicator value is above the level of 70 does not imply a sell point, as stocks can rise during several weeks being in the overvalued zone
On June 25, McCormick had the quarterly financial event and presented the second-quarter report. McCormick presented 2nd-quarter earnings of $1.47 per share on sales of $1.4 billion. The Wall St estimate was $1.16 per share on revenue of $1.4 billion.
This compares to earnings of $1.16 per share a year ago, so posted EPS is an increase of 26.72%. Looking at revenue, figures grew a 7.69% compared to $1.3B same quarter 12 months ago.
McCormick is presenting earnings report next October. Expected earnings of %s per-share for this quarter is $1.49. If you own or you are planning to buy McCormick stock, be on your toes as the financial reporting day usually has a very high volatility, and price can soar and sink with exceptionally low liquidity and not respecting your buy/stop-loss orders. Check company's website to confirm time and details about the earnings call and the earnings report.