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. Finding confidence to make trades in down market environments may make the difference between a good portfolio and a great portfolio.
Investors have the option to employ a wide variety technical indicators when conducting stock research - and we will take a look at a few more here. South Africa Index MSCI Ishares (EZA)'s Williams Percent Range or 14 day Williams %R now sits at -51.29.
The ERP5 Rank is an investment tool that analysts use to discover undervalued companies. RSI measures the magnitude and velocity of directional price movements. The RSI was developed by J. Welles Wilder, and it oscillates between 0 and 100. Wilder has developed multiple indicators that are still quite popular in today's investing landscape. Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.
The Williams Percent Range or Williams %R is another technical indicator worth checking out. Presently, the 14-day ADX is resting at 58.06. The Williams %R is a momentum indicator that helps measure oversold and overbought levels. The Williams %R is similar to the Stochastic Oscillator except it is plotted upside-down. A lower price to book ratio indicates that the stock might be undervalued. Of course, the stock may go up and become a victor, or shares could sour and turn into losers. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a specific period of time. In taking a look at recent performance, we can see that shares have moved 500.00% over the past 4-weeks, 500.00% over the past half year and 471.43% over the past full year. The ADX alone measures trend strength but not direction. The ADX is often used along with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of the trend. Many investors will use the CCI in conjunction with other indicators when evaluating a trade.
Currently, the 14-day ADX for South Korea Index MSCI Ishares (EWY) is sitting at 12.73. Many chart analysts believe that an ADX reading over 25 would suggest a strong trend. A value of 25-50 would support a strong trend. A value of 50-75 would signal a very strong trend, and a value of 75-100 would indicate an extremely strong trend.
The 14-day ADX for All Country World Min Vol MSCI Ishares (ACWV) is now at 12.51. Despite the name, CCI can be used on other investment tools such as stocks. Typically, the CCI oscillates above and below a zero line. Many traders will use a combination of moving averages with different time frames to help review stock trend direction. A CCI reading closer to +100 may indicate more buying (possibly overbought) and a reading closer to -100 may indicate more selling (possibly oversold). On the other side, a reading of -100 would imply that the stock is oversold and possibly set for a rally.
Japan Index MSCI Ishares (EWJ) shares are showing positive signals short-term as the stock has finished higher by 0.50% for the week. The 14-day RSI is now sitting at 25.49, the 7-day is at 16.12, and the 3-day is spotted at 3.84 for Grupo Aeroportuario (OMAB). The Relative Strength Index (RSI) is a highly popular momentum indicator used for technical analysis. Normal oscillations tend to stay in the range of -100 to +100. A certain stock may be considered to be on an uptrend if trading above a moving average and the average is sloping upward. This may include keeping a close eye on the fundamentals as well as the technical data.
The MFI was created by Gene Quong and Avrum Soudack and they believed a reading above 70-80 would signify Overbought territory where a reading below 20-10 would indicate that the conditions were indicative of an Oversold price level.