NIFTY MID LIQ 15 (NIFTYMIDLIQ15.NS) are in trader's focus this week as the Schaff Trend Cycle indicator has trending lower consistently over the past week. Traders may use the indicator to determine if a stock is trending or to spot overbought/oversold conditions. They may also be used to help the trader figure out reliable support and resistance levels for the stock. The simple moving average is a mathematical calculation that takes the average price (mean) for a given amount of time. Using a wider time frame to assess the moving average such as the 200-day, may help block out the noise and chaos that is often caused by daily price fluctuations.
A widely used tool among technical stock analysts is the moving average. Checking on some basic levels for Hikal Limited (HIKAL.NS), the 50-day Moving Average is now 238.31, the 200-day Moving Average is 221.92, and the 7-day is standing at 235.67.
Let's take a further look at the Average Directional Index or ADX. The ADX is a technical indicator developed by J. Welles Wilder used to determine the strength of a trend. This measurement is based on closing prices over a specific period of time. Investors and traders may use this indicator to help spot price reversals, price extremes, and the strength of a trend.
Taking a peek at some Moving Averages, the 200-day is at 1.76, the 50-day is 1.75, and the 7-day is sitting at 2.09. 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. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal. A value of 50-75 would identify a very strong trend, and a value of 75-100 would lead to an extremely strong trend. Currently, NVR Inc (NVR) has a 14-day ATR of 78.00. Active investors may choose to use this technical indicator as a stock evaluation tool. The ATR basically measures the volatility of a stock on a day-to-day basis. The ATR is an indicator developed by J. Welles Wilder.
The RSI, or Relative Strength Index is a popular oscillating indicator among traders and investors. The general interpretation of the ATR is the higher the ATR value, the higher the volatility. The Relative Strength Index (RSI) is an often employed momentum oscillator that is used to measure the speed and change of stock price movements. When the RSI line moves up, the stock may be experiencing strength. The RSI oscillates on a scale from 0 to 100. In general, if the level goes above -20, the stock may be considered to be overbought. Alternately, if the indicator goes under -80, this may show the stock as being oversold.
Shifting gears to the Relative Strength Index, the 14-day RSI is now sitting at 60.95, the 7-day is 49.75, and the 3-day is now at 17.02 for Delmar Pharmaceuticals Inc (DMPI).
Taking a deeper look into the technical levels of Ginni Filaments Limited (GINNIFILA.NS), we can see that the Williams Percent Range or 14 day Williams %R now sits at -87.34. The CCI was created to typically stay within the reading of -100 to +100. A reading between -80 to -100 may be typically viewed as strong oversold territory.
Investors may want to examine some technical indicators when studying a stock.
SUMATEC RESOURCES BERHAD (1201.KL) now has a 14-day Commodity Channel Index (CCI) of 73.64. MA's may be used to identify uptrends or downtrends, and they can be a prominent indicator for detecting a shift in momentum for a particular stock. A CCI closer to +100 may provide an overbought signal, and a CCI near -100 may offer an oversold signal. The 14 day Williams %R for Laboratory Corporation of America Holdings (LH) is noted at -3.07.