| Illinois Tool Works is a global manufacturer of a range of industrial products and equipment. Co.'s segments include: Automotive OEM, which produces components and fasteners for automotive-related applications; Food Equipment, which is engaged in commercial food equipment; Test and Measurement and Electronics, which produces equipment, consumables, and related software for testing and measuring of materials and structures, as well as equipment and consumables used in the production of electronic subassemblies and microelectronics; and Welding, which produces arc welding equipment, consumables and accessories for an array of industrial and commercial applications. |
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).