| MACD Line Shows Promise for Gaming Co.  Dear Chart Of The Day Reader,
Yesterday, we looked at an OBV Chart of Enphase Energy Inc., noting that the stock's OBV line is in an uptrend. Today's Chart of the Day is a Moving Average Convergence/ Divergence (MACD) Chart for Sea Ltd. (NYSE: SE). Sea Limited engages in the digital entertainment, e–commerce, and digital financial service businesses in Taiwan, Thailand, Vietnam, Indonesia, and internationally. It provides Garena digital entertainment platform for users to access mobile and PC online games, and eSports operations; and access to other entertainment content, such as live streaming of online gameplay and social features. Now, below, the MACD Chart is shown below the Daily Price Chart. The SE Daily Price Chart below shows that SE stock is in a price uptrend as the 26/12 Day MACD line (black line) is above the 9–Day EMA (purple line). MACD lines help traders verify the momentum of any given stock's price. They are plotted by subtracting the longer–term Exponential Moving Average from the shorter–term Exponential Moving Average. In this example, we are using the most common parameters: the 26–Day Exponential Moving Average and the 12–Day Exponential Moving Average. When the 26/12 Day MACD line crosses above the 9–Day EMA line, this signals a 'buy'.  MACD charts also include a histogram bar graph, which helps to indicate when a stock's momentum is either accelerating or slowing. You see, when a crossover initially occurs, the histogram's bar will be near flat as the two indicator lines have converged. As the 26/12 MACD and 9–Day EMA lines begin to separate, the bars grow in height. The widening gap indicates acceleration for the stock's momentum. When the histogram's bars begin to shrink, the narrowing of the gap between the 12/26 Day MACD and the 9–Day EMA shows a slowing of the stock's momentum. This can be a signal that a crossover of the indicator lines could happen soon. As you can see in the chart above, once the MACD line crossed above the 9–Day EMA, SE's share price began to rise. If you had purchased SE shares when the MACD 'buy' signal occurred for the stock back on March 27th, when the stock was around $43.93, you'd be up 25.9% by now. Not a bad profit for a month–long hold of a major e–commerce company. We will continue to monitor SE as long as the stock's momentum continues its bullish run. Best Regards, 
Chuck Hughes
Editor, Chart Of The Day | 
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