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Can This Stock Rally? Weighted Alpha Reaches +21.50 For El Paso Electric Company (EE)

Investors may be taking a second look at shares of El Paso Electric Company (EE). After a recent check, we can see that the beta research opinion is currently Buy. This signal uses a system combining volatility, momentum, and wave theory to help spot the general trend. In terms of direction, the signal is currently Strengthening. This signal may indicate if the Buy or Sell is weakening or gaining strength, or if the Hold is leaning towards a Buy or Sell. The beta research strength signal is currently Average. This signal is compared to the historical performance where maximum would be considered the strongest, and minimum would be seen as the weakest. 

When it comes to trading stocks, even veteran investors are prone to making mistakes. Investors will often get bombarded with stock tips touting the next breakout star. Following these tips without fully looking into the situation can wind up being a huge mistake. If even one person knows about the next big stock, chances are many other people already do as well. Getting in too late on a stock that has already made a move can leave investors wondering what went wrong. Taking the time to properly research any stock investment may be a good way to eliminate costly impulse buys. Just because a stock has been running hot doesn’t mean it will continue to go higher in the future.

Taking a look at some indicators on shares of El Paso Electric Company (EE), we note that the reading from the 40-day commodity channel index is currently Buy. The CCI indicator is primarily used to identify oversold and overbought levels. The signal direction is currently Weakest. Checking on the 50-day parabolic time/price signal, we can see the signal is presently Buy. The signal direction is currently reading Weakening. Investors may opt to study a variety of different indicators in order to gain further insight on company share action. Traders may have increased interest when shares are nearing key support and resistance levels.

Tracking current trading session activity on shares of El Paso Electric Company (EE), we can see that the stock price recently hit 65.32. Since the start of the session, the stock has reached a high of 65.33 and hit a low of 64.86. Focusing in on some other information, we can see that the stock has a current weighted alpha of +21.50. The weighted alpha measures how much the stock has increased or decreased over the period of one full year. The weighting puts greater emphasis on more recent activity offering a more relevant measure for short-term technical analysts to use. A positive weighted alpha reading indicates that shares have risen over the past year. A negative reading would indicate that the stock is down over that same time period. Technical traders often use the weighted alpha to help discover stocks that are developing momentum. Current and potential shareholders will be earnestly watching to see how the stock performs as we near the midway point of the calendar year.

El Paso Electric Company (EE) currently has 5 day MA of 65.15. Investors may use moving averages for multiple purposes. Some may use the moving average as a primary trading tool, while others may use it as a back-up. Investors may be looking for when the stock price crosses a certain moving average and then closes on the other side. These moving average crossovers may be used to help identify momentum shifts, or possible entry/exit points. A cross below a particular moving average may signal the start of a downward move. On the other end, a cross above a moving average may suggest a possible uptrend. Investors may be focused on many different time periods when studying moving averages. The stock currently has a 200 day MA of 57.17.

Occasionally, investors will find themselves looking at an underperforming portfolio. Sometimes, this may be a case of the portfolio not being properly diversified. Investing too heavily in one stock or sector can cause the balance to tip the wrong way, especially if the overall market takes a downturn. Although there is no one way to protect against tough economic conditions, setting up the portfolio to withstand a prolonged sluggish period can help ease the mind of the investor when markets are in turmoil. Maintaining a large mix of different types of stocks may help the portfolio survive through rough patches down the line. 

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