Alcobra Ltd (ADHD) Technical Levels in Review — Trading Focus

Elias Hubbard
August 11, 2017

At the time of writing, Famous Dave's of America Inc (DAVE) has a 14-day Commodity Channel Index (CCI) of -12.40. Used as a coincident indicator, the CCI reading above +100 would reflect strong price action which may signal an uptrend.

Traders may be focusing on other technical indicators for stock assessment. On the other hand, a reading of -100 would indicate that the stock is oversold.

Traders may be relying in part on technical stock analysis. They may also be used to help the trader figure out proper support and resistance levels for the stock.

Tracking other technical indicators, the 14-day RSI is presently standing at 50.04, the 7-day sits at 40.20, and the 3-day is resting at 17.68 for Powershares DB Oil Fund (DBO). The RSI was developed by J. Welles Wilder, and it oscillates between 0 and 100. The Awesome Oscillator was introduced by Williams in his book "New Trading Dimensions". Wilder laid out the foundation for future technical analysts to further investigate the RSI and its relationship to underlying price movements. The data is represented graphically by fluctuating between a value of 0 and 100. MA's can be calculated for any time period, but two very popular time frames are the 50-day and 200-day moving averages. According to Chande, whenever the components of the Aroon indicator are in close proximity, this is a sign of market consolidation. An RSI reading over 70 would be considered overbought, and a reading under 30 would indicate oversold conditions.

The Awesome Oscillator for Capital & Regional PLC (CAL.L) is showing a five day consistent uptrend, signaling building market momentum for the shares. The Williams Percent Range or Williams %R is a technical indicator that was created to measure overbought and oversold market conditions. A reading under 30 would indicate oversold conditions. "This modification is called the relative momentum index (RMI), in which momentum is substituted for strength, because a momentum index is usually obtained by creating a moving average of the most recent closing price compared with the close Y days in the past". ADX is charted as a line with values ranging from 0 to 100.

Trying to predict the day to day short-term movements of the stock market can be almost impossible.

Currently, the 14-day ADX for GMP Capital Inc (GMP.TO) is sitting at 31.47. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal.

EnerSys (ENS) now has a 14-day Commodity Channel Index (CCI) of -363.48. The RSI, or Relative Strength Index, is a commonly used technical momentum indicator that compares price movement over time. The RSI operates in a range-bound area with values between 0 and 100. A move above 70 is widely considered to show the stock as overbought, and a move below 30 would indicate that the stock may be oversold. The current level of the shares now stands at 4.17 at the time of writing. Active investors may choose to use this technical indicator as a stock evaluation tool. On the flip side, an RSI near 0 may signal weaker momentum. Investors and traders may use this indicator to help spot price reversals, price extremes, and the strength of a trend. In terms of moving averages, the 200-day is now at 54.40, the 50-day is 55.03, and the 7-day is resting at 55.99. They may look to the 50-day or 20-day to get a better grasp of what is going on with the stock in the near-term. Moving averages can be used to help filter out the day to day noise created by other factors. When combined with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI), it can help decipher the trend direction as well. The ADX is often used along with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of the trend. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions.

Currently, the 14-day ADX for Australian Bauxite Ltd (ABX.AX) is sitting at 25.22. Many chart analysts believe that an ADX reading over 25 would suggest a strong trend.

Moving averages have the ability to be used as a powerful indicator for technical stock analysis. The Williams %R was developed by Larry Williams.

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