Calculated from the last five balance points, the Balance Step indicator can help determine whether a bullish or bearish trend is developing near-term. The current level of the shares now stands at 58.46 at the time of writing. The hope is that the company does very well and becomes highly profitable. With the enormous amount of uncertainty that follows the global investing world on a daily basis, it may be helpful for investors to be able to keep their emotions in check. It is highly important to make sure all the research is done on a stock, especially if the investor is heavily weighted on the name.
Currently, S&P Midcap 400 SPDR (MDY) has a 14-day Commodity Channel Index (CCI) of 152.31. Once you've confirmed the trend by recognizing price as being below or above the cloud, you can move to the moving averages. CCI is relatively high when prices are much higher than average, and relatively low when prices are much lower than the average.
Traders may be relying in part on technical stock analysis. At the time of writing, the 14-day ADX for Riverfront US Flex-Cap ETF (RFFC) is 16.68. Many investors will use the CCI in conjunction with other indicators when evaluating a trade. Many chart analysts believe that an ADX reading over 25 would suggest a strong trend.
Interested investors may be watching the Williams Percent Range or Williams %R. Using the CCI as a leading indicator, technical analysts may use a +100 reading as an overbought signal and a -100 reading as an oversold indicator, suggesting a trend reversal. The current year and quarter performance are: 0.17% and -4.36%. Overbought values are 70 to 100 and investors might look to sell rallies in downtrends when the signal line crosses down from above 80 to below 80. A reading under 30 would indicate oversold conditions.
Tracking other technical indicators, the 14-day RSI is presently standing at 64.01, the 7-day sits at 78.21, and the 3-day is resting at 95.37 for S&P Midcap 400 SPDR (MDY). The RSI can help display whether the bulls or the bears are now strongest in the market. Normal oscillations tend to stay in the range of -100 to +100. As always, the values may need to be adjusted based on the specific stock and market. If the RSI is closer to 100, this may indicate a period of stronger momentum. On the flip side, if the indicator goes under -80, this may signal that the stock is oversold. The RSI was created by J. Welles Wilder who was striving to measure whether or not a stock was overbought or oversold.
Let's take a further look at the Average Directional Index or ADX. Currently, the 7-day moving average is sitting at 7.08. A certain stock may be considered to be on an uptrend if trading above a moving average and the average is sloping upward.