Packaging Corp of America is a producer of containerboard products and a producer of uncoated freesheet paper in North America. Co. has the following reportable segments: Packaging and Paper. In its Packaging segment, Co.'s containerboard mills produce linerboard and corrugating medium that are papers primarily used in the production of corrugated products, as well as its corrugated products manufacturing plants produce a variety of corrugated packaging products. In its Paper segment, Co. manufactures and sells papers, including both commodity and specialty papers, which may have custom or specialized features such as colors, coatings, high brightness, and recycled content.
When researching a stock like Packaging of America, 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 PKG 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 PKG 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 PKG 200 day moving average ("PKG 200 DMA"), while one of the most popular "shorter look-backs" is the PKG 50 day moving average ("PKG 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Packaging of America. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the PKG 200 DMA and the PKG 50 DMA, we get a moving average convergence divergence indicator ("PKG MACD"). The PKG 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