The MACD tells me the volume, closing price, the pattern duration (one week) difference between short and long term bars and the EMA is bullish. Could you interpret that in easier language in case I am misinterpreting it. Incidentally, today the CLS is $72.00. What I read on Scotia, it indicated the prices would be higher over the next while.
Was this an iTrade analyst who prepared this or did it come from a third party?
Thank you once again.
Technical indicators can be used on various different timeframes, and this is crucial when analyzing the potential price movement of a stock. In general, the technical indicators can be viewed on a daily, weekly, or monthly chart, which will all indicate price setups over those respective periods. For example, an investor that is looking to trade over the coming days might use the RSI on a daily timeframe, but an investor with a long-term timeframe (at least 1-year+), it is important to look at the monthly timeframe. For an intermediate timeframe, the weekly can be used.
Looking at CLS' RSI on the daily timeframe, it has pulled back to around the 50 level, which ideally we would want to see be held, and then move higher. On a weekly timeframe, it is also pulling back to levels where we would want to see support be held, and then a move higher. On the monthly, it is technically at 'overbought' levels, but these overbought levels can persist for longer than one expects, and it does not always indicate that price will immediately reverse.
Regarding the MACD, this typically looks at the movement between a short-term moving average (MA) and a longer-term moving average for a particular stock. When we see the short-term moving average cross above the long-term MA from below, this usually indicates potentially good price movement in the short-term, whereas the opposite is true when the short-term MA crosses below the long-term MA from above. It essentially indicates how short-term momentum is crossing paths with the stocks' long-term momentum.
While both indicators cannot predict what will happen, they help to identify what 'could' happen, and the probability of an up or down move taking place, and setting expectations for what can take place thereafter.
We cannot comment on whether the report was developed internally or from a third-party, but generally there are some analysts within the brokerages.