Decision Time: Libbey Inc (AMEX:LBY) Stock Technicals Hit Inflection Point
(LBY Price of Stock at Publication: $8.26)
Decision Time: Libbey Inc (AMEX:LBY) now sits in the perhaps the most difficult technical position -- the stock has no urgency in its direction and that has left it at an inflection point. Watch the key moving average levels that we discuss below and further, watch the stochastics, technical oscillators and momentum readings for any kind of hint to direction.
The company has a three bull momentum rating which indicates an inflection point. It may seem obvious, but this is the time to put the stock on alert -- a meaningful move in either direction now will likely swing momentum into a channel that could be decidedly up or down. With the current stock price and the moving averages showing signs of indecision, any consecutive day stock move in either direction will likely push the stock into a bearish or bullish momentum channel that could persist for the short-term. This is a critical inflection point.
There are explosive trends shaping the world of technology right now and the stocks leading those trends can be identified. Tap Here to learn about CML's Famed Top Picks.
LBY is down -8.1% over the last three months and down -53.9% over the last six months. The stock has returned -54.1% over the last year. The current stock price is $8.26.
LBY Stock Returns
If you're looking for the simplest version of this, here it is -- when the short-term moving averages are above the long-term moving averages that indicates relative strength in the technical. Then see the current price relative to the highest moving average and you will have a "back of the envelope" technical indicator in your back pocket for any stock at any time.
The blending and weighting of numbers above created the technical model built by Capital Market Laboratories (www.CMLviz.com). Note the stock price at publication ($8.26), since the technical rating is based on intraday stock prices.
Technicals | Support: 8.1 | Resistance: 9
Death Cross Alert: The 50 day moving average is now below the 200 day moving average.
As we noted above -- the back of the envelope rule here is that when shorter-term moving averages move below the longer-term ones, momentum is weakening. We have that right now.
Swing Golden Cross Alert: The short-term 10 day moving average is now above the 50 day moving average.
When the shortest-term moving average (10-day in this case) moves above any other moving average (50-day in this case), momentum is climbing.
Libbey Inc has a three bull (inflection point) technical rating because it's trading below both its 10 day and its 200 day simple moving averages. One the other side, we note that the stock is trading above the medium-term 50 day moving average and the 10 day moving average is above the 50 -day moving average ("swing golden cross").
We now turn to the actual numbers driving this rating:
Libbey Inc (AMEX:LBY) rating statistics:
10-day moving average: $8.44
50-day moving average: $8.13
200-day moving average: $13.52