Forward Industries Inc (FORD) Technical Levels in Review — Trading Focus

Henrietta Strickland
August 24, 2017

As a general rule, an RSI over 70 may indicate an overbought situation. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal. The benefit of the Schaff Trend Cycle is that it is meant to be quicker than the standard macd and stochastic signals.

Akin to all moving averages, the angle of the Tenkan line is very important as the sharper the angle, the stronger the trend while the flatter the Tenkan, the flatter or lesser the momentum of the move is. The data is represented graphically by fluctuating between a value of 0 and 100. In general, if the reading goes above -20, the stock may be considered to be overbought. The STC indicator fluctuates between 0 and 100.

Deep diving into the technical levels for Bunzl PLC (BNZL.L), we note that the equity now has a 14-day Commodity Channel Index (CCI) of 159.01. The histogram is an oscillator that moves above and below the zero line, just as the MACD line does. Normal oscillations tend to stay in the range of -100 to +100. A reading from -80 to -100 would indicate an oversold situation. Although the CCI indicator was developed for commodities, it has become a popular tool for equity evaluation as well.

CCI is an indicator used in technical analysis that was designed by Donald Lambert. The 14-day ADX for Cub Energy Inc (TPNEF) is now at 13.05. Many technical chart analysts believe that an ADX reading over 25 would suggest a strong trend. 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. Using the ADX with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) may help determine the direction of the trend as well as the overall momentum.

Investors may be watching other technical indicators such as the Williams Percent Range or Williams %R. The Relative Strength Index (RSI) is one of multiple popular technical indicators created by J. Welles Wilder.

Taking a deeper look into the technical levels of Trans-Siberian Gold PLC (TSG.L), we can see that the Williams Percent Range or 14 day Williams %R now sits at -85.44. Alternately, if the indicator goes below -80, this may point to the stock being oversold. After a recent check, the 14-day RSIfor Credit Suisse AG (USLV) is now at 57.07, the 7-day stands at 58.87, and the 3-day is sitting at 62.56. The RSI, or Relative Strength Index, is a commonly used technical momentum indicator that compares price movement over time. The ADX measures the strength or weakness of a particular trend.

The Money Flow Index is calibrated from 0 to 100, and creates a money flow ratio (Positive Money Flow to Negative Money Flow) over a time period. As a momentum oscillator, the RSI operates in a set range. Divergence shows when momentum is slowing, but it doesn't indicate when a reversal will occur (if it occurs). Wilder introduced RSI in his book "New Concepts in Technical Trading Systems" which was published in 1978. After a recent check, the 50-day Moving Average is 15.11, the 200-day Moving Average is 13.91, and the 7-day is noted at 16.02. On the other side, a stock may be considered to be in a downtrend if trading below the moving average and sloping downward. A reading under 30 may indicate that the stock is oversold, and possibly undervalued. Many investors will look for stocks that are proven industry leaders. Studying all the different company information can take up a lot of time and energy. Fluctuations in the financial markets can have a big effect on shorter-term investments. Investors and traders may be looking to figure out if a stock is trending before employing a specific trading strategy. 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.

Shares of Bunzl PLC (BNZL.L) are moving on volatility today 0.26% or $6.00 from the open.

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.

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