Trading Check: KAMA Trending Up Over the Past 5 Sessions for CBOE S&P 500 Buywrite Index ETN Ipath (BWV)

Watching the numbers for CBOE S&P 500 Buywrite Index ETN Ipath (BWV), we have noted that the Kaufman Adaptive Moving Average is trending higher over the last five sessions. Traders tracking this indicator may be watching out for positive near-term momentum on the stock.

Another technical indicator that might serve as a powerful resource for measuring trend strength is the Average Directional Index or ADX. The ADX was introduced by J. Welles Wilder in the late 1970’s and it has stood the test of time. 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. At the time of writing, the 14-day ADX for CBOE S&P 500 Buywrite Index ETN Ipath (BWV) is noted at 26.56. Many technical analysts believe that an ADX value over 25 would suggest a strong trend. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal.

Traders may also be paying close attention to RSI levels on shares of CBOE S&P 500 Buywrite Index ETN Ipath (BWV). The current 14-day RSI is presently sitting at 65.67, the 7-day is 64.53, and the 3-day is 63.19. The RSI, or Relative Strength Index is a popular oscillating indicator among traders and investors. The RSI operates in a range-bound area with values between 0 and 100. When the RSI line moves up, the stock may be experiencing strength. The opposite is the case when the RSI line is heading lower. Different time periods may be used when using the RSI indicator. The RSI may be more volatile using a shorter period of time. Many traders keep an eye on the 30 and 70 marks on the RSI scale. 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. Traders may use these levels to help identify stock price reversals.

When undertaking stock analysis, investors and traders may choose to view multiple technical levels. CBOE S&P 500 Buywrite Index ETN Ipath (BWV) currently has a 14-day Commodity Channel Index (CCI) of 101.91. Investors and traders may use this indicator to help spot price reversals, price extremes, and the strength of a trend. Many investors will use the CCI in conjunction with other indicators when evaluating a trade. The CCI may be used to spot if a stock is entering overbought (+100) and oversold (-100) territory.

CBOE S&P 500 Buywrite Index ETN Ipath (BWV)’s Williams Percent Range or 14 day Williams %R presently is at -6.07. In general, if the reading goes above -20, the stock may be considered to be overbought. Alternately, if the indicator goes under -80, this may show the stock as being oversold. The Williams %R indicator helps show the relative situation of the current price close to the period being observed.

Moving averages have the ability to be used as a powerful indicator for technical stock analysis. Following multiple time frames using moving averages can help investors figure out where the stock has been and help determine where it may be possibly going. The simple moving average is a mathematical calculation that takes the average price (mean) for a given amount of time. Currently, the 7-day moving average is sitting at 76.42.

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