Computer Services industry
Monitor and predict the growth prospects and potential risks of the Computer Services industry by examining the financial and macroeconomic factors affecting it and the latest Computer Services news tracked by MacroVar. Sign Up Free to get notified instantly on the latest Computer Services updates and get full access to MacroVar advanced analytics of Global Financial Markets, Economies and Financial Risk.
Click to explore the factors and the financial models used by MacroVar to analyze the Computer Services industry trend, growth prospects and risks.
Computer Services industry Markets
Computer Services industry News
Computer Services industry Analysis
MacroVar monitors the performance, risk, trend and momentum of the Computer Services industry by examining the stock and credit performance of major Computer Services companies across the US, Europe, Eastern Europe and Asia Pacific. Computer Services Stock performance is monitored by analyzing STOXX equity indices of major Computer Services companies while Computer Services credit performance is monitored by analyzing Markit iBoxx credit indices reflecting the performance of the Computer Services high yield corporate bond market.
MacroVar also monitors fundamental indicators closely linked to the Computer Services sector published monthly including analysis of sector specific PMI indicators, components of Manufacturing & Services PMI and Economic Sentiment Indicators analysis.
MacroVar also monitors other factors closely related to the Computer Services industry like closely related financial markets or macroeconmic indicators.
MacroVar estimates the following signals:: Computer Services momentum, Computer Services trend, Computer Services oscillator, Computer Services RSI and Computer Services returns.
Computer Services industry Description
The subsector of Computer Services includes companies that provide consulting services to other businesses relating to information technology. Includes providers of computer-system design, systems integration, network and systems operations, data management and storage, repair services and technical support.
Computer Services industry MomentumMomentum is used to capture moves in shorter timeframes than trends. Momentum is the relative change occurring in markets. Relative change is different to a trend. A long-term trend can be up but the short-term momentum of a specific market can be 0. If a market moves down and then moves up and then moves back down the net relative change in price is 0. That means momentum is 0. A short-term positive momentum, with a long-term downtrend results in markets with no momentum.
MacroVar Computer Services momentum signal ranges from -100 to +100. The Computer Services momentum signal is derived as the mean value from 4 calculations for the Computer Services . The timeframes monitored are the following: 1 Day (1 trading day), 1 Week (5 trading days), 1 Month (20 trading days), 3 Months (60 trading days)
For each timeframe, the following calculations are performed: 1. Computer Services return is calculated for the specific timeframe and 2. if the return calculated is higher than 0, signal value output is 1 else signal value is -1. Computer Services momentum signal is the aggregate of the the 4 values. A technical momentum rollover is identified when Computer Services momentum signal moves from positive to negative value or vice-versa.
Computer Services industry trendComputer Services trend signal ranges from -100 to +100. Computer Services trend indicator is the mean value of the 8 calculations described below. The timeframes monitored are the following: 1-month (20 trading days), 3-months (60 trading days), 6-months (125 trading days), 1-year (250 trading days)
For each timeframe, the following calculations are performed: 1. Computer Services Closing price vs Computer Services moving average (MA) calculation: If Computer Services is greater than Computer Services MA value is +1, else -1, 2. Computer Services Moving average slope calculation: if current Computer Services moving average is higher than the previous MA, Computer Services upward slope +1, else -1
Computer Services trend model can be used as a trend strength indicator. Computer Services trend strength values ranging between +75 and +100 or -75 and -100 show strong trend strength.
A technical trend rollover is identified when Computer Services trend strength indicator moves from positive to negative value or vice-versa.
The most important trend indicator
The Computer Services 52-week simple moving average and its slope are the most important indicators defining a market’s trend. Computer Services is in an uptrend when Computer Services price is higher than the 52-week moving average and the Computer Services 52-week moving average has an upward slope. If fundamentals of the market have not changed and the moving average slope is still in uptrend, a price drop signifies a market correction and not a change of trend. Traders should watch oscillators like the Computer Services oscillator and Computer Services RSI to buy the dip and still follow the trend. The moving average slope turn signifies a change of trend.
Computer Services industry oscillatorThe Computer Services oscillator estimated by MacroVar is the z-score of the currentComputer Services price versus Computer Services 1-year simple moving average price. The formula for the Computer Services oscillator is:
Computer Services oscillator = (Current Price – 250 trading days Computer Services simple moving average price) / (250 days Computer Services price standard deviation)
Computer Services oversold conditions
Computer Services is oversold when it is subject to a persistent downward pressure due to extreme fund outflows. When the Computer Services is oversold it is often due for a rebound. Values of the Computer Services oscillator lower than -2.5 signify oversold conditions. It must be noted that the Computer Services oscillator must be analyzed ibn conjunction with the rest ofComputer Services quantitative factors. Traders should pay less attention to overbought or oversold conditions during strong trends. They should pay close attention during counter trends and all combined with the Computer Services RSI.
Computer Services overbought conditions
Computer Services is overbought when it is subject to a persistent upward pressure due to extreme fund inflows. When the Computer Services is overbought it is often due for a correction. Values of the Computer Services oscillator higher than +2.5 signify overbought conditions. It must be noted that the MacroVar oscillator must be compared to the rest of the Computer Services quantitative factors. Traders should pay less attention to overbought or oversold conditions during strong trends. They should pay close attention during counter trends and all combined with the RSI.
Computer Services RSI indicatorThe RSI indicator measures the speed and change of price movements. The RSI indicator oscillates between 0 and 100. RSI is a useful indicator during normal trending market conditions when an asset price oscillates around its trend value. During big moves and strong trends however, like short squeezes or price spikes RSI and other oscillators don’t work.
During normal trend market conditions and when Computer Services is in a downtrend RSI values between 50-60 signify overbought conditions before the downtrend is ready to resume. DuringComputer Services uptrend, RSI values of 40 to 50 signify oversold conditions before the uptrend is ready to resume. It is strongly not recommended to enter a position when the RSI is “overbought” and falling or vice versa.
Computer Services industry returnsMacroVar calculates Computer Services returns for the following timeframes: Daily, Weekly, Monthly, Yearly. The formula for calculating returns is:
Computer Services returns = (Computer Services Closing Price – Computer Services Previous Price)/(Computer Services Previous Price)