Friday, 23 February, 2018

Trading Scope: SuperTrend Above Price for Ishares Edge MSCI Multifact USA ETF

Monday's ETF with Unusual Volume: EFG Active Runners in Focus: Philippines Index MSCI Ishares (EPHE) and Victory US 500 Vol ETF ETF (CFA)
Nellie Chapman | 08 February, 2018, 12:21

The Balance Step reading takes into account the last 5 balance points of the weekly period plotted in step formation on a daily chart. As most investors know, there is no magic formula for coming out a victor in the stock market.

Investors may be looking for the next positive catalyst to create a solid breakout.

Investors may be trying to decide if stocks will make new highs before the year is out, and whether or not the bull market will celebrate its 9th anniversary next year. Many investors like to keep tabs on sell-side analyst views. Investors who prepare themselves for any scenario should be in a much better place than those who don't. Active investors may choose to use this technical indicator as a stock evaluation tool. Currently, Walt Disney Company (DIS) has a 14-day ATR of 2.21.

When applying indicators for technical analysis, traders and investors might want to look at the ATR or Average True Range. The ATR basically measures the volatility of a stock on a day-to-day basis. The RSI was developed by J. Welles Wilder. Wilder has developed multiple indicators that are still quite popular in today's investing landscape. The assumption behind the indicator is that investment instruments move in cycles with highs and lows coming at certain periodic intervals.

The Williams Percent Range or Williams %R is another technical indicator worth checking out. The 14 day Williams %R for Lightpath Tech Inc (LPTH) is noted at -74.00. ADX is charted as a line with values ranging from 0 to 100. A reading between 0 and -20 would indicate an overbought situation. Once the decision is made that the company is a good fit for the portfolio, it may be wise to assess whether or not current conditions and price levels indicate proper levels for share purchase. Traders may also use the reading to identify overbought/oversold conditions. Employing the use of the moving average for technical equity analysis is still highly popular among traders and investors. A shorter-period VMA (aka Fast VMA - a smaller number for the period) is often used to highlight short-term volume surges, which may precede short-term trend reversals.

Currently, the 14-day ADX for SSGA SPDR ETFS Europe I Plc (GLTY.L) is sitting at 21.14. Many technical analysts believe that an ADX value over 25 would suggest a strong trend. A value of 25-50 would support a strong trend. A value of 50-75 would indicate a very strong trend, and a value of 75-100 would signify an extremely strong trend.

Investors studying the fundamentals might be conducting in-depth company research before deciding when to purchase a particular stock. Presently, Pattern Energy Group Inc (PEGI.TO) has a 14-day Commodity Channel Index (CCI) of -174.35. Used as a coincident indicator, the CCI reading above +100 would reflect strong price action which may signal an uptrend. The ADX is typically used in conjunction with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to help spot trend direction as well as trend strength. On the other end, if the indicator heads under -80, this might signal that the stock is oversold.

Traders are paying renewed attention to shares of Ishares Vii Plc (EMUU.L). The current 14-day RSI is presently sitting at 40.75, the 7-day is 35.12, and the 3-day is 34.60.

Shares of Ishares Min Vol USA Smallcap ETF (SMMV) are on watch as the Tenkan Line has moved below the Kijun line, indicating negative momentum for the equity. The RSI oscillates on a scale from 0 to 100. The Elder's Force Index is an oscillator, which attempts to identify the force or strength of a move. Many traders will use the ADX in combination with other indicators in order to help formulate trading strategies. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.