The Battle Of Microsoft Corporation ($MSFT) And Nuance Communications, Inc. ($NUAN)

2019-08-20 | Welcome! Today we compared how two different stocks in the Computer Software: Prepackaged Software industry are trading: Microsoft Corporation and Nuance Communications, Inc.. While these two companies may have very different market capitalizations and balance sheets, they are worth comparing given how they are in the same sector. Below you’ll see how the different technical indicators differ between these two stocks, and we’ll also show what Trading View thinks of them based on the technical analysis. But before we get ahead of ourselves, please note that this is technical analysis only (ie. analyzing how these companies are trading, not digging into the company fundamentals), and therefore you should not rely only on this to guide you on whether you should buy or sell anything – take it with a grain of salt only, and pay attention to the disclaimer below. With that said, many traders find value in technical analysis and others even swear by it, so if that is you, I hope my analysis will be of use to you. Let’s get to it…

First things first: during its last day of trading, Microsoft Corporation opened at 137.85, got to a maximum price of 138.55 and dropped to as low as 136.89 before finishing the session at 138.41. In total there were 24355700 shares traded, which is enough to conduct our analysis. Compare that now to Nuance Communications, Inc., which opened at 16.87, had a high of 17.11, a low of 16.7, closed at 17.08 and had a total volume of 1930600.

VOLUME ANALYSIS: Generally, the higher the volume indicators are, the better – you need liquidity to trade, after all. All of the volume indicators are as follows… (click here for an explanation on volume)

Volume Indicator Microsoft Corporation Nuance Communications, Inc.
Accumulation-distribution index 4179.90696 63.30348
on-balance volume -136.13 -16.71
chaikin money flow

3.74286 2.41667
force index

21.9472 0.2952
ease of movement rating

0.02936 0.01001
volume-price trend

8.00103 0.09396
negative volume index

1000.0 1000.0

VOLATILITY ANALYSIS: Now to compare the volatility between these two companies… (click here for an explanation on volatility)

Volatility Indicator Microsoft Corporation Nuance Communications, Inc.
Average true range 1.2078 0.22053
Bolinger bands 138.87384 17.0474
Upper bollinger band 132.73616 15.9726
Lower bollinger band

136.89 16.7
Bollinger high band indicator

1.0 1.0
Bollinger high low indicator

1.0 1.0
Central keltner channel

137.76333 16.89333
High band keltner channel

137.06333 16.65333
Low band keltner channel

138.46333 17.13333
High band keltner channel indicator

1.0 1.0
Low band keltner channel indicator

1.0 1.0
Donchain channel high band

136.89 16.7
Donchain channel low band

136.89 16.7
Donchain channel high band indicator

1.0 1.0
Donchain channel low band indicator

1.0 1.0

TREND ANALYSIS: Now for the most interesting and detailed part, the trend. Where is the stock actually going? Let’s compare the indicators… (click here for an explanation on trend)

Trend Indicator Microsoft Corporation Nuance Communications, Inc.
Moving Average Convergence Divergence (MACD) trend_macd -0.00853
MACD signal -0.02705 -0.00474
MACD difference -0.02164 -0.00379
fast Exponential Moving Average (EMA) indicator

136.89 16.7
slow Exponential Moving Average (EMA) indicator

136.89 16.7
Average Directional Movement Index (ADX)

unknown unknown
ADX positive

20.0 20.0
ADX negative

20.0 20.0
positive Vortex Indicator (VI)

1.0 1.0
negative VI

1.0 1.0
trend vortex difference

0.00782 0.10283

3.5169 1.06876
Mass Index (MI)

1.0 1.0
Commodity Channel Index (CCI)

-66.66667 -66.66667
Detrended Price Oscillator (DPO)

-7.57824 -0.08872
KST Oscillator (KST)

58.60441 5.34089
KST Oscillator (KST Signal)

58.60441 5.34089
KST difference

-4.19529 -5.71901
Ichimoku rating

138.2 16.99
Ichimoku B rating

138.2 16.99
Ichimoku visual trend A

132.08201 16.80273
Ichimoku visual trend B

134.03497 16.58307
Aroon Indicator (AI)

4.0 4.0
AI indicator down

4.0 4.0
AI difference

-4.0 -4.0

MOMENTUM ANALYSIS: What about momentum? Let’s dive into it… (click here for an explanation on momentum)

Momentum Indicator Microsoft Corporation Nuance Communications, Inc.
Relative Strength Index (RSI) 50.0 50.0
Money Flow Index (MFI) 100.0 100.0
True Strength Index (TSI) 100.0 100.0
ultimate oscillator

88.75647 34.29164
stochastic oscillator

237.14286 170.83333
stochastic oscillator signal

237.14286 170.83333
Williams %R rating

137.14286 70.83333
awesome oscillator

-0.3105 -0.06983

RETURNS: That’s all for technical analysis. Now let’s just list the returns for Microsoft Corporation and Nuance Communications, Inc..

Daily return 5.86044 0.53409
Daily log return -1.59791 -2.30174
Cumulative return -1.58521 -2.27545

So there you have it: our deep, grueling analysis comparing Microsoft Corporation and Nuance Communications, Inc. together. But what does all of the above mean? Various technical indicators above are positive, while others are negative, and if we want to decide overall if the technical analysis indicates a bullish or bearish chart, we have to consider all of them together. That’s what the Trading View widget below can do, so let’s see what it says considering all these indicators. First, here’s Microsoft Corporation:

The verdict above will consider all these technical indicators and consider which are strong and weak, and then put them all together to come up with a conclusion stating whether MSFT is strong or weak. Again – this is not a reliable indication of whether Microsoft Corporation is a good investment! None of these indicators consider the company fundamentals. All of this data is based on how it trades only. Now with that out of the way, let’s compare it with Nuance Communications, Inc.

So there you have it. We hope you have found this analysis useful, and if you see any errors or have any feedback, please comment below.

How can you profit off trading these 2 companies and other stocks like it? First, check out the Beat The Market Analyzer software – this is worth its weight in gold. Some other great services for earning income from trading and investing are Dividend Stocks (an outstanding resource for anyone interested in high dividend paying stocks), Microcap Millionaires (the best site online for profiting off micro-cap stocks) and Trading Code (an extremely powerful system for profiting off trading).

DISCLAIMER: We are not registered investment advisers and the above analysis should be taken at face value only. We strongly advise against buying or selling anything based solely on our analysis above, and are not responsible for any losses that you may incur if you choose make any investment decisions based on the above.

Gary Ivenchuck

Gary is a stock trading expert and is responsible for covering technical analysis news on Logistics Business Review. Recently he has been working tirelessly to analyse stocks for our readers, and is always available to hear from people asking for stock analysis.
Gary Ivenchuck

Leave a Reply

Your email address will not be published. Required fields are marked *