Investors may be watching other technical indicators such as the Williams Percent Range or Williams %R. The ADX is a technical indicator developed by J. Welles Wilder used to determine the strength of a trend. Chande first described the indicator in the September 1995 issue of Stocks & Commodities magazine. The STC combines an exponential moving average with slow stochastics to display a signal line that oscillates between two levels on a scale of 0 to 100. “Aroon” is a Sanskrit word meaning “dawn’s early light”.
iShares MSCI Global Metals & Mining Producers ETF (PICK)’s Aroon Up level has reached above the key level of 70, indicating a strong upward trend for the security. Aroon Up below 50 warns that the up-trend is weakening while Aroon Down below 50 signals that the down-trend is weakening. According to Chande, whenever the components of the Aroon indicator are in close proximity, this is a sign of market consolidation.
Turning to some additional key technicals, Aristocrat Leisure Ltd (ALL.AX)’s Williams Percent Range or 14 day Williams %R is now sitting at -55.56.
Oversold values are 0 to 20 and investors might look to buy dips in up trends when the signal line crosses up from below 20 to above 20. A CCI closer to +100 may provide an overbought signal, and a CCI near -100 may provide an oversold signal. The Williams %R is a momentum indicator that helps measure oversold and overbought levels.
We can also take a look at the Average Directional Index or ADX of Costain Group plc (COST.L). Some analysts believe that the ADX is one of the best trend strength indicators available. The indicator is computed by using the average losses and gains of a stock over a certain time period.
Similar to RSI, the RMI indicator moves in the range of 0 to 100; and the same as with RSI, the relative Momentum Index’s values above 70 and below 30 are considered as an indication of overbought and oversold conditions. The RSI, or Relative Strength Index is a popular oscillating indicator among traders and investors. Otto Energy Ltd (OEL.AX) now has a 14-day Commodity Channel Index (CCI) of 29.79. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 50-75 would indicate a very strong trend, and a value of 75-100 would signify an extremely strong trend.
Diving into some additional numbers, presently, LYXOR UCITS ETF CHINA ENTERPRISE HSCEI – USD (P58.SI) has a 14-day Commodity Channel Index (CCI) of 94.63. Developed by Donald Lambert, the CCI is a versatile tool that may be used to help spot an emerging trend or provide warning of extreme conditions. On the other end of the spectrum, a younger investor with a longer time horizon might be able to search for stocks with a higher potential for growth that may involve much more risk. Following multiple time frames using moving averages can help investors figure out where the stock has been and help determine where it may be possibly going. This indicator compares the closing price of a stock in relation to the highs and lows over a certain time period. They may also be used to help the trader figure out reliable support and resistance levels for the stock. Currently, the 200-day MA for White Cliff Minerals Ltd (WCN) is sitting at 59.00. The RSI operates in a range-bound area with values between 0 and 100. A reading under 30 would indicate oversold conditions. RSI can be used to detect general trends as well as finding divergences and failure swings.