Some investment professionals believe that a great way to find, study, and invest in equities without getting completely overwhelmed, is to have a systematic and research driven approach. With many stocks frequently hitting new milestone highs, investors may be scrambling to make sure that they aren’t missing out on possible returns.
Deep diving into the technical levels for Direxion Daily Developed Markets Bear 3X Shares ETF (DPK), we note that the equity now has a 14-day Commodity Channel Index (CCI) of -101.67.
When applying indicators for technical analysis, traders and investors might want to look some additoinal indicators such as the ATR or Average True Range. Used as a coincident indicator, the CCI reading above +100 would reflect strong price action which may signal an uptrend. On the flip side, a shorter MA like the 50-day may help with identifying shorter term trading signals.
Investors may use multiple technical indicators to help spot trends and buy/sell signals. At the time of writing, Direxion Daily Homebuilders & Supplies Bull 3X Shs (NAIL) has a 14-day Commodity Channel Index (CCI) of -74.54. Presently, Direxion Daily Junior Gold Miners Idx Bear 3X Shs ETF (JDST)’s Williams Percent Range or 14 day Williams %R is resting at -97.68. In general, if the level goes above -20, the stock may be considered to be overbought. Alternately, if the indicator goes below -80, this may point to the stock being oversold.
Taking a deeper look into the technical levels of QuantX Risk Managed Growth ETF (QXGG), we can see that the Williams Percent Range or 14 day Williams %R now sits at -62.16. This is a momentum indicator that is the inverse of the Fast Stochastic Oscillator.
Currently, the 14-day ADX for Direxion Daily Gold Miners Index Bull 3X Shares ETF (NUGT) is sitting at 17.96. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would indicate a strong trend. If the RSI is closer to 100, this may indicate a period of stronger momentum. The ADX is typically plotted along with two other directional movement indicator lines, the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI). The ADX is often used along with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of the trend. The RSI was created by J. Welles Wilder who was striving to measure whether or not a stock was overbought or oversold. Wilder laid out the foundation for future technical analysts to further investigate the RSI and its relationship to underlying price movements. The RSI oscillates on a scale from 0 to 100. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70. A reading over 70 would indicate that the stock is overbought, and possibly overvalued.
Apollo Investment Corp (AIB) shares are moving today on volatility -0.00% or $-0.0007 from the open. The NYSE listed company saw a recent bid of $14.805 and 330 shares have traded hands in the session. Because the TL (Tenkan Line) uses price instead of an averaging or the closing prices, it mirrors price better and is more representative of it. The tendency is to then try to recoup losses by taking even bigger risks which can lead to complete disaster. Checking in on some other technical levels, the 14-day RSI is now at 69.24, the 7-day stands at 77.28, and the 3-day is sitting at 93.73. The current 14-day ATR for Franklin Liberty International Opportunities ETF (FLIO) is now sitting at 0.19.
Taking a peek at some Moving Averages, the 200-day is at 37.13, the 50-day is 34.56, and the 7-day is sitting at 33.24.
Investors may be trying to get an edge by following some additional technical levels for Zen Technologies Limited (ZENTEC.NS).
A certain stock price rally by itself may not be sufficient evidence when making important investing decisions. Finding bargain stocks at current levels may be much harder than spotting hidden gems when markets are down. Traders and investors will no doubt be closely monitoring the markets as we move into the second half of the year. Many investors may be crafting plans for when the good times inevitably come to an end.