In terms of Relative Strength Index for Velpic Limited (VPC.AX), the 14-day RSI is currently noted at 48.16, the 7-day is 52.74, and the 3-day is sitting at 74.66. The Relative Strength Index (RSI) is a very popular momentum indicator used for technical analysis. The RSI can help show whether the bulls or the bears are currently strongest in the market. The RSI may be used to help spot points of reversals more accurately. The RSI was developed by J. Welles Wilder. As a general rule, an RSI reading over 70 would signal overbought conditions. A reading under 30 would indicate oversold conditions.
In terms of CCI levels, Velpic Limited (VPC.AX) currently has a 14-day Commodity Channel Index (CCI) of 3.13. 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. The 14-day ADX is presently 16.22. Many technical chart analysts believe that an ADX reading over 25 would suggest a strong trend. A level under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal. The ADX is typically plotted along with two other directional movement indicator lines, the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI). Some analysts believe that the ADX is one of the best trend strength indicators available.
Investors may be studying other technical indicators like the Williams Percent Range or Williams %R. The Williams %R is a momentum indicator that helps measure oversold and overbought levels. This indicator compares the closing price of a stock in relation to the highs and lows over a certain time period. A common look back period is 14 days. Velpic Limited (VPC.AX)’s Williams %R presently stands at -66.67. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would indicate an overbought situation. A reading from -80 to -100 would indicate an oversold situation. Looking at some moving average levels, the 200-day is at 0.01, the 50-day is 0.01, and the 7-day is sitting at 0.01. Moving averages can help identify trends and price reversals. They may also be used to help spot support and resistance levels. Moving averages are considered to be lagging indicators meaning that they confirm trends. 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.
With equity investing, there will constantly be worries and fears. The volatility in the market that accompanies these fears may trick investors into thinking the next bear market is on the doorstep. During a market-wide sell off, many stocks may experience the pain. Over time, many may gain back the ground they lost and return to previous levels. The biggest names may be the ones to recoup the losses the quickest. However, many investors might get stuck waiting for a rebound that just isn’t going to happen. Having the flexibility to adapt to market conditions may help repair a damaged portfolio. Sometimes a readjustment may be needed in order to regain some confidence. As the next round of earnings reports start to come in, investors will be keeping a close watch to see which companies produce the largest surprises, both positive and negative.