When applying indicators for technical analysis, traders and investors might want to check out the ATR or Average True Range. The current 14-day ATR for Powershares DB Commodity Index Tracking Fund (DBC) is currently sitting at 0.15. The ATR basically measures the volatility of a stock on a day-to-day basis. The average true range is typically based on 14 periods and may be calculated daily, weekly, monthly, or intraday. The ATR is not considered a directional indicator, but it may reflect the strength of a particular move.
Some investors may find the Williams Percent Range or Williams %R as a helpful technical indicator. Presently, Powershares DB Commodity Index Tracking Fund (DBC)’s Williams Percent Range or 14 day Williams %R is resting at -98.72. Values can range from 0 to -100. A reading between -80 to -100 may be typically viewed as strong oversold territory. A value between 0 to -20 would represent a strong overbought condition. As a momentum indicator, the Williams R% may be used with other technicals to help define a specific trend.
Investors may use multiple technical indicators to help spot trends and buy/sell signals. Presently, Powershares DB Commodity Index Tracking Fund (DBC) has a 14-day Commodity Channel Index (CCI) of -175.42. The CCI was developed by Donald Lambert. The assumption behind the indicator is that investment instruments move in cycles with highs and lows coming at certain periodic intervals. The original guidelines focused on creating buy/sell signals when the reading moved above +100 or below -100. Traders may also use the reading to identify overbought/oversold conditions.
The Average Directional Index or ADX is a popular technical indicator designed to help measure trend strength. Many traders will use the ADX in combination with other indicators in order to help formulate trading strategies. Presently, the 14-day ADX for Powershares DB Commodity Index Tracking Fund (DBC) is 33.90. In general, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would signal a very strong trend, and a value of 75-100 would indicate an extremely strong trend. The ADX alone was designed to measure trend strength. When combined with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI), it can help decipher the trend direction as well.
Taking a peek at some Moving Averages, the 200-day is at 15.14, the 50-day is 14.72, and the 7-day is sitting at 14.07. The moving average is a popular tool among technical stock analysts. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a specific period of time. Moving averages can be very useful for identifying peaks and troughs. They may also be used to help the trader figure out proper support and resistance levels for the stock.
Investors may be doing a portfolio evaluation as we head into the second half of the calendar year. Assessing results from the first half may help identify what went right, and what went wrong. Many investors may have missed the charge, and they keep hoping for stocks to retreat to go on a buying spree. Gaining a solid grasp on the markets may take years to truly figure out. Combining technical analysis and tracking fundamentals may provide a large boost of confidence to the investor. Being able to sift through the countless chatter may take some perseverance and extreme focus. Creating a winning portfolio might only be a few sharp trades away.