Technicals Telling Us a Story:: 20D Lower Donchian at 74.23 for Barrett Business Services, Inc. ($NASDAQ:BBSI$)

With most types of investments, there is typically some level of risk. This is no different when dealing with the stock market. Investors have to decide how much risk is acceptable and plan accordingly. Many new stock market investors face the challenge of deciding where to begin. Following strategies that have proven to work in the past may be one way to go. Many investors will look to mimic the strategies of the most celebrated investors. Although this may be a good way to start, it may be necessary to fully understand every aspect that those successful investors examine. Blindly following trading plans without doing the proper research can lead to future trouble down the line if there is indeed a market shake-up.

Shares of Barrett Business Services, Inc. (NASDAQ:BBSI) ended last session at 76.46. Following today’s trade, we note that the stock has moved 1.12419% since the opening bell. The company has a current market cap of 566377700. The stock’s high price over the last month is presently 79.99.

Following the Chaikin Money Flow indicator, we note that the current 20 day value is 0.063523054 for Barrett Business Services, Inc. (NASDAQ:BBSI). Traders will watch to see if the indicator can help confirm an ongoing trend. In the midst of a bullish trend, the CMF value staying above zero may point to continuous buying pressure and the possibility of a sustained rise in price. In the midst of a bearish trend, the CMF value staying below zero may show continuous selling pressure and the possibility of continued price decline.

Scanning the equity market, we note that the stock’s current Oscillator Rating is showing “Buy”. Traders will take note of many different factors when examining a stock’s health. Flipping over to the Moving Average Rating, we see that the current sentiment is pointing to a “Buy”.

Watching volatility readings, we can see the current value for the stock is 2.4490883. Volatility for the week stands at 2.8417013, and the monthly reading is 2.8542616. Volatility involves the amount of risk in relation to the amount of change in a stock’s value.

The 20 day Keltner Channels upper envelope is 77.31148. The 20 day Keltner Channels lower envelope is 75.5624. The Keltner Channels indicator was introduced by Chester Keltner in his book How to Make Money in Commodities. Keltner’s ideas have since been expanded upon and are widely used by technical traders.

Donchian Channels may be useful for technical traders. The primary function of the indicator is to measure volatility. The bands will widen when volatility is high, and they will become narrow with low volatility. The 20 day upper band level is 77.79. For the same period, the lower band level is 74.23.

Trading on volume of 400, Barrett Business Services, Inc. (NASDAQ:BBSI) has seen a change from the open of 0.21 since the stock opened at 76.25. Monitoring today’s activity, the stock has hit a high point of 76.46 and slipped to a low of 76.25. 

Checking in on the Awesome Oscillator, we see that the reading is 0.052367646. Traders may follow this oscillator to measure market momentum. Created by Bill Williams, the Awesome Oscillator calculates the difference of the 5 period and 34 period SMA.

One of the biggest downfalls of the individual investor is not being able to take losses when it becomes necessary. Of course nobody wants to take a loss, but the repercussions of not letting go of a losing stock can end up sealing the demise of the well-intentioned investor. Many professionals would probably agree that the pain of realizing a loss is more intense than the joy of picking a winner. Investors who become reluctant to sell losers may be delaying the inevitable and essentially suffocating the portfolio. Not addressing the losing side can have severe negative effects on the long-term health of the portfolio. Investors may have to find a way to face the music and sell when they realize that a trade has gone sour.