| April 1st, 2021 Buying Pressure Drives ACM Shares Higher Dear Reader, Yesterday, we looked at a Daily Price Chart of Trimble Inc., noting the stock’s 50-Day EMA is trading above the 100-Day EMA signaling a ‘Buy’. For today’s Trade of the Day we will be looking at an On Balance Volume chart for Aecom Technology Corp. stock symbol: ACM. Before breaking down ACM’s OBV chart let’s first review which products and services are offered by the company. AECOM, together with its subsidiaries, delivers professional services to program and construction management in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates through three segments: Americas, International, and AECOM Capital. The company engages in planning, consulting, architectural, engineering, and construction management services for commercials and governments clients. It also invests in and develops real estate projects. Confirming a Price Uptrend with OBV The ACM daily price chart below shows that ACM is in a price uptrend as the current price is above the price ACM traded at six months ago (circled). The On Balance Volume chart is below the daily chart. On Balance Volume measures volume flow with a single Easy-to-Read Line. Volume flow precedes price movement and helps sustain the price uptrend. When a stock closes up, volume is added to the line. When a stock closes down, volume is subtracted from the line. A cumulative total of these additions and subtractions form the OBV line. On Balance Volume Indicator ● When Close is Up, Volume is Added ● When Close is Down, Volume is Subtracted ● A Cumulative Total of Additions and Subtractions form the OBV Line Volume flow precedes price and is the key to measuring the validity and sustainability of a price trend. We can see from the OBV chart below that the On Balance Volume line for ACM is sloping up. An up-sloping line indicates that the volume is heavier on up days and buying pressure is exceeding selling pressure. Buying pressure must continue to exceed selling pressure in order to sustain a price uptrend. So, On Balance Volume is a simple indicator to use that confirms the price uptrend and its sustainability. The numerical value of the On Balance Volume line is not important. We simply want to see an up-sloping line to confirm a price up trend. 
Confirmed ‘Buy’ Signal for ACM Since ACM's OBV line is sloping up, the most likely future price movement for ACM is up, making ACM a good candidate for a stock purchase or a call option purchase. Let's use the Hughes Optioneering calculator to look at the potential returns for an ACM call option purchase. The Call Option Calculator will calculate the profit/loss potential for a call option trade based on the price change of the underlying stock/ETF at option expiration in this example from a flat ACM price to a 12.5% increase. The Optioneering Team uses the 1% Rule to select an option strike price with a higher percentage of winning trades. In the following ACM option example, we used the 1% Rule to select the ACM option strike price but out of fairness to our paid option service subscribers we don’t list the strike price used in the profit/loss calculation. Our initial price target for ACM stock is 68.50 per share. | 
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