Independent Oil & Gas PLC (IOG) Stock Rating Reaffirmed by VSA Capital

Marco Green
September 13, 2017

Using a longer term moving average such as the 200-day may help block out the noise and chaos that is sometimes created by daily price fluctuations. The author states that because the average's fallback is slow, trading systems can be created with nearly whipsaw-free trades.

Sharp investors may be looking to examine the Williams Percent Range or Williams %R. The Williams %R oscillates in a range from 0 to -100. According to the signal, this may point to the stock entering buy territory. The Company's licenses include P1736 covering blocks 48/22b and 48/23a in which lies the Blythe gas field; P1609 covering block 9/21a in which lies the Skipper oil discovery; P2085 covering blocks 48/23c and 48/24b (Truman and Harvey), and P2260 covering block 48/22c (Elgood, Hambleton, Tetley and Rebellion). Levels above -20 may indicate the stock may be considered is overbought. Investec maintained it with "Sell" rating and GBX 180 target in Tuesday, August 11 report. The ATR is not considered a directional indicator, but it may reflect the strength of a particular move. In some cases, MA's may be used as strong reference points for finding support and resistance levels. At the time of writing, the 14-day ADX for Faroe Petroleum PLC (FPM.L) is noted at 23.75. Many technical chart analysts believe that an ADX value over 25 would suggest a strong trend. A value of 25-50 would indicate a strong trend.

Investors may use various technical indicators to help spot trends and buy/sell signals.

Independent Oil and Gas PLC (IOG.L) now has a 14-day Commodity Channel Index (CCI) of 80.09. The CCI was developed by Donald Lambert. The 52 week high for the stock is 299.86 GBX while the 52 week low for the stock is 142.3 GBX. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions.

The RSI, or Relative Strength Index, is a widely used technical momentum indicator that compares price movement over time. When charted, the RSI can serve as a visual means to monitor historical and current strength or weakness in a certain market. The ATR is not used to figure out price direction, just to measure volatility. This is a momentum indicator that is the inverse of the Fast Stochastic Oscillator. The RSI operates in a range-bound area with values between 0 and 100. On the flip side, a reading below -100 may signal a downtrend reflecting weak price action. The RSI was originally created by J. Welles Wilder which was introduced in his 1978 book "New Concepts in Technical Trading Systems". IOG has recorded a 50-day average of 14.29GBX and a two hundred day average of 15.98GBX. Employing the use of the moving average for technical equity analysis is still highly popular among traders and investors.

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