Rockwell Automation is a provider of industrial automation and digital transformation. Co. has three operating segments: Intelligent Devices, Software and Control, and Lifecycle Services. The Intelligent Devices segment includes drives, motion, safety, sensing, industrial components, and configured-to-order products. The Software and Control segment includes control and visualization software and hardware, information software, and network and security infrastructure. The Lifecycle Services segment includes consulting, other services and solutions, connected services, and maintenance services, as well as the Sensia joint venture.
When researching a stock like Rockwell Automation, 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 ROK 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 ROK 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 ROK 200 day moving average ("ROK 200 DMA"), while one of the most popular "shorter look-backs" is the ROK 50 day moving average ("ROK 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Rockwell Automation. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the ROK 200 DMA and the ROK 50 DMA, we get a moving average convergence divergence indicator ("ROK MACD"). The ROK 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