Keeping track of all the different company and global economic news can be head spinning at times. When the RSI line moves up, the stock may be experiencing strength. Keep in mind when using this oscillator, that it takes four mathematical steps from price itself to create the 4th derivative, the histogram: Price = two ema averages = MACD line = Signal line = Histogram. Which means it lags price quite a bit. Zero line and Signal line crossovers are used as trade signals to enter and exit trending trades. A level of 50 would indicate neutral market momentum. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions.
Traders may also be paying close attention to RSI levels on shares of Deutsche X-trackers MSCI EAFE Hi Dv Yld Hdg Eq ETF (HDEF). The 50-day is 26.38, and the 7-day is sitting at 26.51. Using a bigger time frame to assess the moving average such as the 200-day, may help block out the noise and chaos that is often caused by daily price fluctuations. Moving averages may also function well as a tool for determining support and resistance levels. Active investors may choose to use this technical indicator as a stock evaluation tool.
Tracking other technical indicators, the 14-day RSI is presently standing at 63.39, the 7-day sits at 75.08, and the 3-day is resting at 89.65 for Deutsche X-trackers MSCI Germany Hedged Equity ETF (DBGR). The Williams %R oscillates in a range from 0 to -100. As a general observance, the more overbought or oversold the reading displays, the more likely a reversal may take place. CCI is an indicator used in technical analysis that was designed by Donald Lambert.
The Williams %R is created to provide a general sense of when the equity might have reached an extreme and be primed for a reversal. This is a momentum indicator that is the inverse of the Fast Stochastic Oscillator.
Currently, the 14-day ADX for Deutsche X-trackers MSCI Em Mkts Hdg Eqty ETF (DBEM) is sitting at 16.85. For traders looking to capitalize on trends, the ADX may be an essential technical tool. Developed by Larry Williams, this indicator helps spot overbought and oversold market conditions. On the flip side, a shorter MA like the 50-day may help with identifying shorter term trading signals. 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.
Deutsche X-trackers MSCI Em Mkts Hdg Eqty ETF (DBEM) are in focus today as the charts are revealing that the Mesa Adaptive Moving Average (MAMA) is holding steady above the FAMA, or Fractional Moving Average. Many technical analysts believe that an ADX value 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. A value of 50-75 would indicate a very strong trend, and a value of 75-100 would signify an extremely strong trend.
The Average Directional Index or ADX is technical analysis indicator used to discern if a market is trending or not trending.
The Relative Strength Index (RSI) is one of multiple popular technical indicators created by J. Welles Wilder. The RSI is computed base on the speed and direction of a stock's price movement. The RSI may be more volatile using a shorter period of time. The RSI oscillates on a scale from 0 to 100. The normal reading of a stock will fall in the range of 30 to 70. A reading over 70 would indicate that the stock is overbought, and possibly overvalued. On the other hand, a reading of -100 would imply that the stock is oversold and possibly set for a rally.
Checking in on some other technical levels, the 14-day RSI is now at 64.73, the 7-day stands at 68.82, and the 3-day is sitting at 79.41.