Vanguard ETF: Is It A Buy

Vanguard is an investment management group that has trillions of dollars of assets under management. It provides exchange traded and mutual funds. We will be looking at the Vanguard S&P 500 ETF (VOO). We’ll be spending some time looking at the technical indicators to help us understand where VOO might be heading, and provide a VOO stock price analysis.

MACD

The Moving Average Convergence (MACD) is a trend momentum indicator that shows the relationship in this case between the 12 day and 26-day moving averages. It is commonly used as a buy or sell signal. If the MACD 12 day line in blue crosses the 26-day signal line in orange, It indicates a bullish buying signal. This is because of the shorter MACD 12 day moving average has diverged from the long term moving average and upside momentum is occurring. The opposite has occurred in the above graph with VOO pointing towards an a possible decrease in price. Previously we did similar analysis with Beyond Meat before in order to best understand where the price might head before the stock skyrocketed to where it is now. Likewise our VOO stock price analysis yields similar details. However before you can use market insights to better your decision making it’s important first to learn how to trade.

Momentum Indicator

The momentum indicator (MOM) is a very popular indicator that measures a commodities rate of change. It functions by comparing the current price of the stock against the price from a number of periods ago. That is then created into a function that oscillates above and below 0. As it is showing here as the line is now below the 0 line it has a bearish signal possibly indicating the the commodity may fall in the future. Many stocks are currently being shorted on the market and as a result, we’ve compiled a list of some of the most interesting here.

With all this said it is always important to remember to diversify your investments to ensure that you are less sustainable to market volatility and rapid market movements. Also if you are new to investing make sure you look into trading with a demo account to practice, more information on that can be found here.

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