Using Swami Aroon

Swami Aroon is  Green indicates uptrends and red indicates downtrends. Like all Swami indicators, the bottom of the charts shows the shorter lookback periods and gives you an early signals, while the middle provides confirmation and the upper portion provides continuation.

In the example chart for Ball Corporation (BLL) below, the top chart shows Swami Aroon and the bottom chart shows the traditional Arron indicator. The traditional Aroon gives you a view at only a single lookback period, in this case 14 bars. SwamiAroon shows a composite range of lookback periods and is typically easier to interpret. At the short lookback periods (bottom of chart) SwamiArron gives you an early indication of a change in trend. Similarly at the longer lookback periods, you are able to have a view of trend continuation.

I decided to examine Ball Corporation after reading this article arguing for it’s future success. And although the Swami Aroon is still suggesting to ignore or sell this stock I believe it could become drastically undervalued if current trends continue.

Ball Corp is a $6 billion, 131-year-old company that makes Coke (KO) cans. The company used to make those Cracker Barrel-ish glass canning jars, but it got out of glass and plastic years ago to focus on drink cans, food tins (like aluminum take-out boxes) and other metal containers. Coke is just one of hundreds of customers, including the U.S. government for aerospace parts.

In the past decade, Ball’s share price has never taken a downward turn that lasted more than about eight months. Even during the recession, these shares tended to outperform the index considerably. The share price has doubled in the past five years; rose about 50% over the past two.

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