Heidelbergcement rises on high volatility and expanding price range

Heidelbergcement rises on high volatility and expanding price range
Published: 09 September 2010

Heidelbergcement traded between an intraday low of €34.12 and a high of 35.42. The price range has expanded in the last two days (from 1.0 two days ago to 1.30 today) which, accompanied by a price rise, is a bullish signal. Today its volatility (highest price minus lowest price/lowest price) of 3.8% was 3.6 times the average daily volatility of 1.1%, up from 2.9% on Tuesday and 2.8% on Monday. A price rise on high volatility is a bullish signal. The stock price rose 27.0 cents (or 0.8%) to close at EUR35.26. Compared with the DAX index, which rose 46.6 points (or 0.8%) on the day, this was a relative price change of 0.01%.

Moving average price (MAP) [with equal weightage to prices at close]: the price to 200-day MAP ratio is 0.83, a bearish indicator. In the past 200 days this ratio has been under 0.83 19 times suggesting further downside. The stock is trading below both its MAPs and the 50-day MAP of EUR36.57 is lower than the 200-day MAP of EUR42.42, a bearish indicator. The 200-day MAP has decreased to EUR42.42. A decrease is another bearish indicator.

Exponential Moving Average Price (EMAP) [with higher weightage to recent prices]: the price to 50-day EMAP ratio is 0.96. In the past 50 days this ratio has been under 0.96 41 times suggesting downside. The 50-day EMAP has decreased to EUR36.58. A decrease is another bearish indicator.

Moving Average Convergence Divergence (MACD): the MACD indicator of 12-day Exponential Moving Average (EMA) minus the 26-day EMA is negative suggesting a bearish signal.