Avery Dennison is engaged in the production of pressure-sensitive materials and a variety of tickets, tags, labels and other converted products. Co. sells its pressure-sensitive materials to label printers and converters that convert the materials into labels and other products through embossing, printing, stamping and die-cutting. Co. sells other pressure-sensitive materials in converted form as tapes and reflective sheeting. Co. also manufactures and sells a variety of other converted products and items not involving pressure-sensitive components, such as fasteners, tickets, tags, radio-frequency identification inlays and tags, imprinting equipment and related solutions.
When researching a stock like Avery Dennison, 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 AVY 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 AVY 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 AVY 200 day moving average ("AVY 200 DMA"), while one of the most popular "shorter look-backs" is the AVY 50 day moving average ("AVY 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Avery Dennison. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the AVY 200 DMA and the AVY 50 DMA, we get a moving average convergence divergence indicator ("AVY MACD"). The AVY 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). |
Free AVY Email Alerts:
Video: Technical Analysis