PowerShares S&P International Developed Momentum Portfolio (IDMO) to Issue $0.10 Quarterly Dividend

S&P Smallcap Financials PS (PSCF) Share Price Heads Above Balance Step

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.

When choosing indicators for technical stock analysis, traders and investors may opt to examine the ATR or Average True Range in addition to Mesa Moving Average comparisons.

The RSI, or Relative Strength Index, is a widely used technical momentum indicator that compares price movement over time. Even though investors typically know they should do this, novices tend to do just the opposite, buy high and sell low. Typically, the CCI oscillates above and below a zero line.

Investors may be watching other technical indicators such as the Williams Percent Range or Williams %R. Williams %R is a popular technical indicator created by Larry Williams to help identify overbought and oversold situations. Investors will commonly use Williams %R in conjunction with other trend indicators to help spot possible stock turning points. Factset Research Systems Inc (FDS)'s Williams Percent Range or 14 day Williams %R now sits at -96.98. They may attempt to get in on the stock after a big move with hopes of the stock going higher and an overall thought that relates to the fear of missing out. A reading from -80 to -100 would indicate an oversold situation. Traders often add the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of a trend. A common look back period is 14 days. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would support a strong trend.

Investors may use various technical indicators to help spot trends and buy/sell signals.

Taking a closer look from a technical standpoint, S&P Smallcap Industrials PS (PSCI) presently has a 14-day Commodity Channel Index (CCI) of -179.83. The CCI was developed by Donald Lambert. Often times, amateur investors will get carried away when a stock is trending higher. The original guidelines focused on creating buy/sell signals when the reading moved above +100 or below -100. As a general rule, an RSI reading over 70 would signal overbought conditions. After a recent check, the 14-day RSIfor Paychex Inc (PAYX) is now at 29.94, the 7-day stands at 16.80, and the 3-day is sitting at 3.52. Wilder laid out the foundation for future technical analysts to further investigate the RSI and its relationship to underlying price movements. When charted, the RSI can serve as a visual means to monitor historical and current strength or weakness in a certain market. This measurement is based on closing prices over a specific period of time. As a momentum oscillator, the RSI operates in a set range. The RSI oscillates on a scale from 0 to 100. This is a momentum indicator that is the inverse of the Fast Stochastic Oscillator. Other technical analysts have built upon the work of Wilder.

Keeping an eye on Moving Averages, the 50-day is 202.98, the 200-day is at 183.46, and the 7-day is 211.34 for Factset Research Systems Inc (FDS). A reading over 70 would indicate that the stock is overbought, and possibly overvalued. Many traders will use a combination of moving averages with different time frames to help review stock trend direction.

Related:

Comments

Latest news

Kia Nurse, UConn return to Final Four after ousting reigning champs
First-team All-American Sabrina Ionescu led OR with 26 points, but the Ducks struggled offensively over the final 20 minutes. Gabby Williams had 23 points as UConn scored the most points in school history for this round of the NCAA Tournament.

Photo Doctored To Show Emma Gonzalez Tearing Constitution In Half
No one could believe that there were bodies in that building waiting to be identified for over a day. Gonzalez's speech lasted 6 minutes and 20 seconds - the same length of time as the shooting.

Banks stocks, positive European markets lift equities
The laggards were BSE Information Technology (-0.68%), Oil & Gas (-0.31%) and Teck (-0.08%) were the only laggards. It edged higher by 132.60 points or 1.33 per cent to provisionally close at 10,130.65 points (at 3.30 p.m).

Pakistan's First Transgender News Anchor Takes Social Media By Storm
Junaid Ansair, the owner of Kohenoor, has said Malik had been selected on merit and not on gender issues. It feels like home here at work; I feel they're all my family because I never got a family's love.

Investigators into fatal Russian mall fire say exits were blocked
The most serious case is an 11-year-old boy whose parents and siblings died in the fire, Health Minister Veronika Skvortsova said. Scores of children are feared to be among at least 64 people killed in a fire that swept through a busy Russian shopping centre.

Other news