Investor’s Roundup (Intraday Analysis) – Taseko Mines Limited (NYSE: TGB)

There was no respite for the dollar on Wednesday, with the greenback extending the decline that’s taken it to the lowest level in three years. Stocks in Europe edged lower after a mixed session in Asia, and gold added to recent gains.

The dollar slipped against almost all its major peers, taking its losing streak to three days. The move happened even as the yield on 10-year Treasuries edged higher, tracked by those of most European government bonds. The Stoxx Europe 600 Index fell and Japanese shares weighed on the Asia gauge, while emerging-market equities dropped for the first time in nine days. The record winning streak for Chinese stocks in Hong Kong continued. The British pound strengthened again.

Shareholders will now likely shift attention to Thursday’s European Central Bank meeting, while they keep an eye on Davos, Switzerland, where the world’s business and political elites have gathered for an annual conference that will feature the leaders of the U.S., U.K. and Germany among others. The dollar remains a key focus as traders increasingly cite concerns about a widening U.S. trade deficit that’s been highlighted by President Donald Trump’s protectionist moves.

Meanwhile, on the back of the greenback’s weakness and despite dovish talk from Japan’s central bank this week, the yen pushed past 110 per dollar for the first time since September. Oil in New York paused its rally near the highest since December 2014 amid signs of a possible gain in U.S. crude stockpiles, and Bitcoin was trading at around $11,000.

Here’s what to watch out for this week:

  • Earnings season is in full swing: General Electric, Intel, LVMH Moet Hennessy Louis Vuitton, Starbucks and Hyundai Motor all come this week.
  • Barring any last minute changes in Washington, President Donald Trump will join world leaders and senior executives in Davos for the annual World Economic Forum.
  • The European Central Bank declares its rate decision on Thursday
  • The U.K. House of Lords is considering Prime Minister Theresa May’s Brexit bill this week. (Source: Bloomberg)

Top Pick for Wednesday: Taseko Mines Limited (NYSE: TGB)

Taseko Mines Limited (NYSE: TGB) has grabbed attention from the analysts when it experienced a change of -0.55% in the last trading session to close at $1.81. A total of 1,916,810 shares exchanged hands during the intra-day trade contrast with its average trading volume of 1.02M shares, while its relative volume stands at 1.89. Relative volume is the comparison of current volume to average volume for the same time of day, and it’s displayed as a ratio. If RVOL is less than 1 it is not In Play on this trading day and Investors may decide not to trade it.  If RVOL is above 2 it is In Play and this is more evidence Investors ought to be in the name.  When stocks are *very* In Play one can see a RVOL of 5 and above.  The higher the RVOL the more In Play the stock is.

Day traders strive to make money by exploiting minute price movements in individual assets (usually stocks, though currencies, futures, and options are traded as well), usually leveraging large amounts of capital to do so, therefore they trade on Stocks in Play. In Play Stocks are volatile enough to produce good risk and reward trading opportunities for both bull and bear traders intraday. Most company stocks have very little volatility. They generally move extremely slowly and they only produce big price swings when the company produces good or bad trading results, which may only happen a couple of times a year at best.

In deciding what to focus on – in a stock, say – a typical day trader looks for three things: liquidity, volatility and trading volume. Liquidity allows an investor to enter and exit a stock at a good price (i.e. tight spreads, or the difference between the bid and ask price of a stock, and low slippage, or the difference between the predictable price of a trade and the actual price). If a stock does not have good liquidity then it may take some time before a broker is able to negotiate a deal to buy or sell a stock and the broker may not be able to get the sell or buy price that the trader is looking for. This is a problem for day traders and it could mean the difference between a profitable and non-profitable trade.

Traders have different rules for what constitutes liquidity and a good guide is the volume of trades and volume of shares that are traded each day. 100,000 shares traded per day would be a minimum for most traders and some require 1,000,000.

Trading volume is a gauge of how many times a stock is bought and sold in a given time period (most commonly, within a day of trading, known as the average daily trading volume – ADTV). A high degree of volume indicates a lot of interest in a stock. Often, a boost in the volume of a stock is a harbinger of a price jump, either up or down.

Volatility is simply a measure of the predictable daily price range—the range in which a day trader operates. More volatility means greater profit or loss. After a recent check, Taseko Mines Limited (NYSE: TGB) stock is found to be 6.16% volatile for the week, while 5.69% volatility is recorded for the month.

Technical’s Snapshot:

The stock has a market cap of $416.88M and the number of outstanding shares has been calculated 230.32M. Based on a recent bid, its distance from 20 days simple moving average is -12.64%, and its distance from 50 days simple moving average is -13.40% while it has a distance of 6.52% from the 200 days simple moving average. The company’s distance from 52-week high price is -26.36% and the current price is 81.00% away from 52-week low price. The company has Relative Strength Index (RSI 14) of 34.39 together with Average True Range (ATR 14) of 0.11.

Stock’s Valuation:

Past 5 years growth of TGB observed at -24.90%, and for the next five years the analysts that follow this company is expecting its growth at N/A. The stock’s price to sales ratio for trailing twelve months is 1.37 and price to book ratio for the most recent quarter is 1.35, whereas price to cash per share for the most recent quarter are 5.26. Its quick ratio for the most recent quarter is 1.60. Analysts mean recommendation for the stock is 3.00. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.

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Robert Thomas has over 14 years experience in the financial services industry giving him a vast understanding of how news affects the financial markets. He is an active day trader spending the majority of her time analyzing earnings reports and watching commodities and derivatives. He has a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.