All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. 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, Tenneco Inc. Class A Voting stock matches one trading strategy:
Tenneco Inc. Class A Voting stock is in an uptrend since in early April that so far has marked a gorgeous 235% gain. Price marked a local bottom in this uptrend at $6.40 last Friday, and since then it bounced off a 15.63%. Breaking out above $12.69 - it's last top - will be a good entry point if Tenneco Inc. Class A Voting resumes the uptrend. If you decide to enter this trade, the suggested stop loss is at $11.42
|Buy setup||Buy point||Stop loss||Risk|
|Uptrend buy setup||$12.69||$11.42||10%|
Knowing when to sell a stock is even more difficult than knowing when to buy it. Trading strategies allow us to avoid rash decisions based on our feelings or the buzz that surrounds the market. When selling, as well as buying, our strategies are very easy to use and are only valid for selling stocks in your porfolio, not for shorting TEN stock
A guiding principle is that you must never keep an investment that leads to greater losses than those expected by the time of purchase. The timing to sell shares must always be determined by the stop-loss (automatic or manual)
In the current situation of Tenneco Inc. Class A Voting there is not any eligible sell setup, so Tenneco Inc. Class A Voting stock holders with operations in green 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, just one analyst rating was published for Tenneco Inc. Class A Voting
|Jun 19th, 2020|
|JPMorgan Chase & Co.||Neutral|
Since in early April, Tenneco Inc. Class A Voting has been printing an uptrend that by now marked a gorgeous 234.84%. The price shows higher highs and higher lows, and along the way gave some entry points for those who wanted to enter. Latest pullback was last Friday, when price bounced at $6.40. Like in all uptrends, price needs to rest and now price is consolidating the gains in a range between $12.69 and $6.40
A favorite tool of many technical analysts are the moving averages, that easily show trend direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages
Technical analysts use supports and resistances to find price points in the stock price action that tend to work as barriers, containing the price of a stock to move up or down. A support level is a level where the price may find support as it falls. This means that the price is more likely to "rebound" this level rather than break through it. However, if the price breaks down the support, it is likely to continue descending until approaching another support level. On the other hand, resistances are where the price tends to find opposition as it moves up. Again, this means that the price is more likely to "bounce off" at this level, and if it finally breaches this level, the price will climb more easily until it meets the next resistance
The current resistance levels are:
The current support levels are:
This is an indicator that was designed in the 1980s by John Bollinger. Basically, the Bollinger Bands are lines that run 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
Since the price broke down the lower band last Thursday, the price bounced by 13.67%
The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. Its objective is to plot the current and past weakness or strength of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI fluctuates in a range from 0% to 100%. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by investors
The RSI dropped below the overbought level of 70 in early June after just crossing to the overbough zone for 1 day (weak signal). The RSI reading today was 50.96. Tenneco Inc. Class A Voting stock tanked a 41.08% since RSI lost the overbought zone
Tenneco Inc. Class A Voting (TEN) published 1st-quarter earnings of $-0.31 per share, significantly enhancing the analysts consensus estimate of $-0.83 per share. This Q1 report means an earnings surprise of 62.65%. On the contrary, the company said turnover for Q1 was $3.8 billion consistent with the market forecasts.
Same quarter last year, reported EPS was $0.52, so current EPS means a loss of -159.62%. Sales collapsed a -14.29% on an annualized basis in the 1st-quarter, from $4.5B to $3.8B last quarter.
TEN posts financial report on early next August. Wall Street analysts forecast an Earnings per Share of $-3.57, that is a 1051.61% less than previous quarter. Financial reporting day has a more than usual risk for investors as the data disclosed can jump up or down the stock price with exceptionally low liquidity and not honouring your buy or stop-loss orders. Check company's website to confirm time and details about the earnings call and the earnings report.