MACD in Focus: Looking Closer at Shares of Kite Pharma Inc (KITE)

Moving average convergence divergence (MACD) is a trend-following momentum indicator that illustrates the relationship between two moving averages.  MACD is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA.  A “signal line”, the 9-day EMA of the MACD, can then be plotted on top of the MACD, acting as a trigger for buy and sell signals.  There are three methods used to interpret the MACD.  The first is “Crossovers”.  When the MACD falls below the signal line, it is bearish, indicating that it might be time to sell.  When the MACD shoots above the signal line, the indicator is bullish, indicating that the price of the commodity is probably going to experience upward momentum.  The second method is “Divergence”, meaning that when the price of the security diverges from the MACD, it signals the end of the current trend.  Lastly, there is the “Dramatic Rise”.  When the MACD experiences a dramatic rise, the signal indicates overbought status and will probably soon return to more normal levels.

The 9-day difference between a short-term and long-term moving average.  A value above 0 indicates a bullish signal while a value below 0 interprets as a bearish signal.  Kite Pharma Inc (KITE)’s 9-Day MACD is 0.38 and its 14-Day MACD is 0.57.  It’s 20-Day MACD is 13.2, 50-Day MACD is 45.54 and, finally, it’s 100-Day MACD is 70.35.

The Open is the start of trading on a securities exchange.  The open indicates the start of an official business day for an exchange, meaning that transactions may begin for the day.  The different exchanges have different opening times.  Kite Pharma Inc (KITE) opened at $178.99.  Kite Pharma Inc (KITE)’s high, highest trade price for the day, was $179.48.  Kite Pharma Inc (KITE)’s lowest trade price for the day was $178.6.  Kite Pharma Inc (KITE)’s last trade price was $178.61.

Change is the difference between the current price and the previous day’s settlement price.  Change is the basis for describing and measuring data over a specific period of time.  A negative change indicates declining performance while a positive change indicates an improved performance.  Interpretation change can be left to the analyst.  The formula for finding change is by subtracting the previous time period from the most recent time period.   If a company trades at $20 at the end of the first quarter and $40 at the end of the second quarter, the change $40 minus $20, or $20.  Here we find the change to be positive, but by how much?  The price went up from $20 to $40, so it doubled.  In this example, the company’s stock price grew 100% in the first quarter.  Investors like change.  Change allows investors to make a profit.  In volatile markets, there are many opportunities for investors to make up for losses.  Prices are based on the change in price of assets.  Value is based on changing prices.  “Calls” make a bet that the price of the asset will increase, while “puts” bet that the price of the asset will go decrease.  More volatility means that there is more likely a chance for investors to make a profit.  Kite Pharma Inc (KITE)’s share price changed $-0.53, a percentage of -0.30%%.

Volume is the number of shares traded specific period of time.  Every buyer has a seller, and each transaction adds to the total count of the volume.  When a buyer and a seller agree on a transaction at a certain price, it is considered to be one transaction.  For example, if only ten transactions occur in a trading day, the volume for the day is ten.  Volume is used to measure the relative worth of a market move.  When the markets make a strong price movement, the strength of that movement depends on the volume over that period.  The higher the volume means the more significant the move.  Volume levels give clues about where to find the best entry and exit points.  Kite Pharma Inc (KITE) experienced a volume of 3197800.

Volume is an important measure of strength for traders and technical analysts because volume is the number of contracts traded.  The market needs to produce a buyer and a seller for any trade to occur.  The market price is when buyers and sellers meet.  When buyers and sellers become very active at a certain price, this means that there is high volume.  Bar charts are used to quickly determine the level of volume and identify trends in volume.

Barchart Opinions show investors what a variety of popular trading systems are suggesting.  These Opinions take up to 2 years’ worth of historical data and runs the prices through thirteen technical indicators.  After each calculation, a buy, sell or hold value for each study is assigned, depending on where the price is in reference to the interpretation of the study.  Today’s opinion, the overall signal based on where the price lies in reference to the common interpretation of all 13 studies, for Kite Pharma Inc (KITE) is 80% Buy.

Disclaimer: Nothing contained in this publication is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.

Leave a Comment