American Tower Corporation is a holding company. Co. operates as a real estate investment trust (REIT), which owns, operates and develops multitenant communications real estate. Its segments include U.S. & Canada property, Asia-Pacific property, Africa property, Europe property, Latin America property, Data Centers and Services. Its primary business is leasing space on multitenant communications sites to wireless service providers, radio and television broadcast companies, wireless data providers, government agencies and municipalities and tenants in a number of other industries.
When researching a stock like American Tower, 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 AMT 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 AMT stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the AMT 200 day moving average ("AMT 200 DMA"), while one of the most popular "shorter look-backs" is the AMT 50 day moving average ("AMT 50 DMA"). A chart showing both of these popular moving averages is shown on this page for American Tower. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the AMT 200 DMA and the AMT 50 DMA, we get a moving average convergence divergence indicator ("AMT MACD"). The AMT MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
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Video: Technical Analysis