Here we will take a look at the ADX reading on shares of CPSE ETF (CPSEETF.BO). Many chart analysts believe that an ADX reading over 25 would suggest a strong trend. A reading under 20 would suggest no trend, and a reading from 20-25 would suggest that there is no clear trend signal.
The ADX was created by J. Welles Wilder to help determine how strong a trend is. In general, a rising ADX line means that an existing trend is gaining strength. The opposite would be the case for a falling ADX line.
At the time of writing, the 14-day ADX is standing at 19.68. Many chart analysts believe that an ADX reading above twenty five would suggest a strong trend.
Looking further at additional technical indicators we can see that the 14-day Commodity Channel Index (CCI) for CPSE ETF (CPSEETF.BO) is sitting at -47.89. CCI is an indicator used in technical analysis that was designed by Donald Lambert. A CCI reading closer to +100 may indicate more buying (possibly overbought) and a reading closer to -100 may indicate more selling (possibly oversold).
Moving Averages – Price Reversal Indicators
Shares of CPSE ETF (CPSEETF.BO) have a 7-day moving average of 29.63. Taking a look at the relative strength indictor, we note that the 14-day RSI is currently at 45.61, the 7-day stands at 45.26, and the 3-day is sitting at 57.62.
What Are These Used For?
- Spot Trends
- Identify Price Reversals
- Locate support or resistance levels
A certain stock may be considered to be on an uptrend if trading above a moving average and the average is sloping upward. On the other side, a stock may be considered to be in a downtrend if trading below the moving average and sloping downward.
Taking a glance at the relative strength indictor, we note that the 14-day RSI is currently at 45.61, the 7-day stands at 45.26, and the 3-day is sitting at 57.62. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70. RSI can be used to detect general trends as well as finding divergences and failure swings.
RSI Key Metrics
- Below 30 = Oversold Range
- Above 70 = Overbought Range
Investors may be circling the wagons wondering what’s in store for the stock market over the next few months. Capitalizing on the current trends may be just what the doctor ordered. Searching for value in the current investing landscape may be a priority for some investors. The mindset of one investor may be completely different from another. Sometimes stocks that look too good to be true actually are, and those that are actually very good may not look that enticing. Keeping a close watch on technicals and fundamentals may be a good way to start filtering through the vast sea of equities. Many stock enthusiasts will also keep a sharp focus on positive estimate revisions to help gain an edge in the markets. Whatever the strategy, investors will no doubt be searching far and wide for consistent outperformers.