Here we will take a look at the ADX reading on shares of Duxton Water Limited (D2OO.AX). 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 42.72. 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 Duxton Water Limited (D2OO.AX) is sitting at 141.36. 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 Duxton Water Limited (D2OO.AX) have a 7-day moving average of 0.02. Taking a look at the relative strength indictor, we note that the 14-day RSI is currently at 60.25, the 7-day stands at 62.59, and the 3-day is sitting at 56.82.
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 60.25, the 7-day stands at 62.59, and the 3-day is sitting at 56.82. 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
Keeping watch on technicals may involve many different plans and scenarios. Investors may be seeking to get some clarity about a certain stock’s history, and eventually try to project the future. With so much historical data available, investors may choose to look at many different time frames when examining a stock. Going back days, months, of even years, may help broaden the scope and help investors see the bigger picture. When companies gear up to release the next round of quarterly earnings results, investors will be closely watching to see how profitable the overall quarter was. Occasionally, low expectations may provide ample impetus for future stock gains. Per usual, there will most likely be big winners and losers depending on the strength of the individual reports.