Church & Dwight Co. develops, manufactures and markets various consumer household and personal care products and specialty products focused on animal and food production, chemicals and cleaners. Co.'s segments are: Consumer Domestic, which focuses on baking soda-based products and other products as well as includes household and personal care product groups; Consumer International, which markets a variety of personal care, household and over-the-counter products in international subsidiary markets; and its Specialty Products Division, which focuses on sales to businesses and participates in three product areas such as Animal and Food Production, Specialty Chemicals and Specialty Cleaners.
When researching a stock like Church and Dwight, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from CHD Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for CHD stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of these ways is called the Relative Strength Index, or RSI. This popular indicator, originally developed in the 1970's by J. Welles Wilder, looks at a 14-day moving average of a stock's gains on its up days, versus its losses on its down days. The resulting CHD RSI is a value that measures momentum, oscillating between "oversold" and "overbought" on a scale of zero to 100. A reading below 30 is viewed to be oversold, which a bullish investor could look to as a sign that the selling is in the process of exhausting itself, and look for entry point opportunities. A reading above 70 is viewed to be overbought, which could indicate that a rally in progress is starting to get crowded with buyers. If the rally has been a long one, that could be a sign that a pullback is overdue. |
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