Pegasystems Inc. (PEGA) Shares Reach New 52-Week High on Average Volume

Pegasystems Inc. (NASDAQ: PEGA) shares established a new 52-week high of $33.10 today, last trading at $32.35 and could be a company to watch at the open tomorrow and going forward. A number of analysts have commented on the stock recently, and the company has earned a consensus one-year price target of $31.50, lower than the opening price of $31.75.

Meanwhile, U.S. stocks closed higher on Wednesday, with energy companies the biggest gainers of the day as crude prices climbed nearly 2%.

The Dow Jones Industrial Average [DJIA] closed up 41.23 points, or 0.2%, to close at 18,203.17. The S&P 500 [SPX] rose 4.74 points, or 0.2%, to end at 2,144.33.

The Nasdaq Composite Index [COMP] edged up 2.58 points, or 0.05%, ending at 5,246.41.

U.S. stock futures on Thursday pointed to a flat open, as traders readied themselves for a stream of forthcoming economic data. Investors are waiting for readings on jobless claims, existing-home sales and a key Philly Fed index.

S&P 500 futures ESZ6, +0.06% inched up by 1.90 points, or 0.1%, to 2,140, while Dow Jones Industrial Average futures YMZ6, +0.10% edged higher by 22 points, or 0.1%, to 18,147.

Nasdaq-100 futures NQZ6, +0.10% are up 6 points, or 0.1%, to 4,836.25.

The easiest, and best way to assemble a list of potential high performers is to refer to the new 52-week highs list.

For investors it can mean a trading or investing opportunity on either the long or short side, depending on the point of view of the investor.

Why New 52-Week Highs Are Closely Watched

Some view a company or stock hitting its highest price in a year as a sign of momentum and consider the event a time to buy in. Others, though, tend to interpret a new 52-week high as likely signaling the end of a strong run, with the stock peaking out before a period of decline.

However, data shows 3 out of 4 stocks follow the market’s direction, so you always want to trade in sync with the market direction

Watch for heavy-volume accumulation by institutional investors, particularly at buy points.

Pegasystems Inc. (NASDAQ: PEGA) now has a market cap of $2.47B

The average daily volume for Pegasystems Inc. (NASDAQ: PEGA) is 290,835 shares out of a total float 35,825,000 and some 2,600,007 shares crossed the trading desk yesterday. 21 percent higher than normal. Significant increases in trading volume and price appreciation together could signal heavy volume accumulation by institutional investors.

As with all breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.

If the share price rises sharply and the trading volume spikes well above average, that indicates demand.

Pegasystems Inc. (NASDAQ: PEGA) Moving Averages, Why Do they Matter

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

With that in mind Pegasystems Inc. (NASDAQ: PEGA) now has a 50-day MA is $28.45 and 200-day MA is $27.01, and it has traded in a 52-week range between $20.38 – 33.10 and the stocks last price was -227.00% percent off the 52 week high.

Earnings growth is an important factor to look at when buying stocks and investors look for companies that have grown their earnings at least 25% or more for the past 3 years.

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