Stanley Black & Decker provides hand tools, power tools, outdoor products and related accessories, engineered fastening solutions and attachment tools. Co.'s segments are: Tools and Outdoor, which includes the Power Tools Group that includes other and consumer products, Hand Tools, Accessories and Storage that sells hand tools, power tool accessories and storage products, and Outdoor Power Equipment businesses that sells corded and cordless electric lawn and garden products; and Industrial, which includes the Engineered Fastening that sells engineered components and various engineered products, and Infrastructure businesses that sells hydraulic tools and heavy equipment attachment tools.
When researching a stock like Stanley Black and Decker, 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 SWK 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 SWK 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 SWK 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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Video: RSI Indicator