Stock Rolling Backwards Pre-Bell, Looks for a Reversal: Xylem Inc. (NYSE:XYL)

Investors are watching Xylem Inc. (NYSE:XYL) ahead of the market open as shares are gapping down -1.73% with the stock currently sitting at $65.19.

Investors might be trying to figure out an investment plan that is right for them. Some may opt to go with a short-term plan, and others may choose to invest in stocks for the long haul. The thought of creating a defined plan may be overwhelming to some. Comparing the plusses and minuses of both may be a good way to start forming a strategy. Investing for the short-term may offer chances to capitalize on gains over a few weeks or months. There may be more fluctuations to deal with in the short-term, but the rewards may be greater if managed properly. One drawback of investing for the short-term is that it may involve more risk. The element of correct timing comes into play when trying to enter or exit a position, which may not be for everyone. Investing for the long-term may be a safer way to go as investors are typically looking for smaller gains over a longer period of time.

A gap is a space between prices that occurs when the price of a stock makes a move down or up when there is no trading happening in between.  Gaps are created by numerous factors.  Poor earnings, bad news, organizational changes and/or market influences can cause a stock’s price to decrease suddenly. 

From time to time, investors may need to decide when to sell a winner. This can be one of the tougher portfolio decisions to make. When a winning stock keeps rising, it can be tough to part with it. Investors may become hesitant to sell because they don’t want to miss out on greater profits in the future. Sometimes this strategy will work, and other times investors may be watching all previous gains evaporate. Being able to sell a winner can provide obvious profits, and it may even be a confidence booster for the average investor. On the flip side, investors may also be faced with the decision of when to sell a loser. Even the most researched trades can go sour. Being able to detach from the trade mentally can end up saving the investor more grief down the line. Holding onto a stock with the hopes of a giant turnaround can be a recipe for portfolio disaster. Being able to cut losses is just as much a part of the process as being able to cash in winners. Learning from mistakes and being able to wipe the slate clean can help the investor be better prepared for future endeavors in the markets. 

Performance

Xylem Inc. (NYSE:XYL)’s performance this year to date is 33.97%.  The stock has performed -0.41% over the last seven days, 0.58% over the last thirty, and 10.70% over the last three months.  Over the last six months, Xylem Inc.’s stock has been 28.69% and 24.61% for the year.

SIMPLE MOVING AVERAGE

The simple moving average is the most common method used to calculate the moving average of prices.  It takes the sum of all of the past closing prices over a specific time period and divides the result by the number of prices used in the calculation.  Xylem Inc.’s 20-Day Simple Moving Average is -0.48%.  Extending back, their 50-Day Simple Moving Average is 1.17%, looking even further back, their 200-Day Simple Moving Average stands at 16.77%.  

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