Globe Life is an insurance holding company. Through its wholly-owned subsidiaries, Co. provides a variety of life and supplemental health insurance products and annuities to customers. Co.'s segments are: life insurance, which writes a variety of nonparticipating ordinary life insurance products including whole-life, term life, and other life insurance; health insurance, which provides Medicare Supplement and limited-benefit supplemental health insurance products that include primarily critical illness and accident plans; annuities, which include single-premium and flexible-premium deferred annuities; and investments, which consist primarily of investment-grade securities.
When researching a stock like Globe Life, 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 GL 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 GL 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 GL 200 day moving average ("GL 200 DMA"), while one of the most popular "shorter look-backs" is the GL 50 day moving average ("GL 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Globe Life. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the GL 200 DMA and the GL 50 DMA, we get a moving average convergence divergence indicator ("GL MACD"). The GL 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). |
Video: Technical Analysis