Illinois Tool Works Inc. is a global manufacturer of a diversified range of industrial products and equipment. Co.'s segments include Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products, and Specialty Products. The Automotive OEM segment produces components and fasteners for automotive-related applications. The Food Equipment segment produces ware washing equipment, cooking equipment, refrigeration equipment, food processing equipment, kitchen exhaust, ventilation and pollution control systems and others. Its Welding segment produces arc welding equipment and metal arc welding consumables and related accessories.
When researching a stock like Illinois Tool Works, 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 ITW 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 ITW 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 ITW 200 day moving average ("ITW 200 DMA"), while one of the most popular "shorter look-backs" is the ITW 50 day moving average ("ITW 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Illinois Tool Works. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the ITW 200 DMA and the ITW 50 DMA, we get a moving average convergence divergence indicator ("ITW MACD"). The ITW 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