Although it was originally intended for commodity traders to help identify the start and finish of market trends, it is frequently used to analyze stocks as well. The next couple of weeks may be the flawless time for investors to put the pedal down and try to develop a strategy that will beat the market over the next quarter. Although there are plenty of investors who will stick to the solid, historically steady stocks, there are plenty more that are searching for that next big victor that will give the portfolio a big bump. Investors may become very familiar and comfortable with a certain sector, and they may be completely missing out on opportunities from other fast growing sectors. Avoiding common investing pitfalls may take many years to master, but it may end up determining long-term success. Investors may need to follow a disciplined system which may help keep emotions in check when making investment decisions.
Investors may be trying to get an edge by following some additional technical levels for Canada Index MSCI Ishares (EWC). The 14-day RSI is now sitting at 46.22, the 7-day is at 49.92, and the 3-day is spotted at 53.29 for Cirrus Logic Inc (CRUS). The RSI was developed by J. Welles Wilder. The RSI may be useful for spotting abnormal price activity and volatility. A value of 50-75 would indicate a very strong trend, and a value of 75-100 would signify an extremely strong trend. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70.
When looking at technical levels, traders should not overlook the RSI reading as it often can dictate if momentum has pushed past a key metric.
Canada Index MSCI Ishares (EWC) now has a 14-day Commodity Channel Index (CCI) of 106.81.
When undertaking stock analysis, investors and traders may choose to view multiple technical levels in addition to the MFI. Despite the name, CCI can be used on other investment tools such as stocks. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction. After a recent check, the 14-day RSIfor South Korea Index MSCI Ishares (EWY) is now at 59.94, the 7-day stands at 65.81, and the 3-day is sitting at 67.28. In general, an ADX value from 0-25 would indicate an absent or weak trend. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal. The ADX is typically used in conjunction with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to help spot trend direction as well as trend strength. ADX is used to gauge trend strength but not trend direction. Investors may be watching other technical indicators such as the Williams Percent Range or Williams %R. The Williams %R indicator helps show the relative situation of the current price close to the period being observed. The Index measures the performance of equity securities of Russell 1000 index issuers with relatively higher price-to-book ratios and higher forecasted growth. The 14-day RSI is still a widely popular choice among technical stock analysts.
Currently, the 14-day ADX for South Korea Index MSCI Ishares (EWY) is sitting at 12.73. The RSI oscillates on a scale from 0 to 100. A value between 0 to -20 would represent a strong overbought condition. A reading from -80 to -100 would signal an oversold situation.
Tracking shares of Chile Index MSCI Ishares (ECH), we have noted that Span A is presently above Span B. Traders following this signal will be looking for signs of a bullish stock price shift. Using the ADX with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) may help determine the direction of the trend as well as the overall momentum. In some cases, MA's may be used as strong reference points for finding support and resistance levels.