Today May 13 iShares S&P 100 ETF (OEF) Rises 0.32%

Heading Higher or Stalling Out? What The Technicals Reveal About Riverfront US Flex-Cap ETF (RFFC)

A long position should be maintained as long as the indicator is moving above the price levels, whereas a short position - while it is below them. Moreover, the indicator should be adjusted depending on the characteristics of the underlying shares.

Over the course of the day 1.90M shares traded hands, as compared to an average volume of 2.74M over the last 30 days for SPDR Blmbg BarclaysST HY Bd ETF (NYSEARCA:SJNK). When charted, the RSI can serve as a visual means to monitor historical and current strength or weakness in a certain market. RSI can be used to help spot overbought or oversold conditions. Wilder introduced RSI in his book "New Concepts in Technical Trading Systems" which was published in 1978. A reading under 30 may indicate that the stock is oversold, and possibly undervalued. The current year and quarter efficiency are: 1.65% and -3.53%. The ADX is typically used along with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) which point to the direction of the trend. 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. The 14-day RSI is now sitting at 80.55, the 7-day is at 86.82, and the 3-day is spotted at 94.26 for Surface Transforms Plc (SCE.L). Ichimoku Kinko Hyo, which translates to "equilibrium at a glance chart", was developed to allow a trader to quickly and easily appraise the trend, momentum, and support and resistance levels of an asset, from a single chart.

For further review, we can take a look at another popular technical indicator. 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. Strong trends can present a problem for these classic overbought and oversold levels. S&P Capital Markets ETF SPDR (KCE)'s Williams %R presently stands at -44.07. As always, the values may need to be adjusted based on the specific stock and market. A reading under 20 would suggest no trend, and a reading from 20-25 would suggest that there is no clear trend signal. On the flip side, a reading below -100 may signal a downtrend reflecting weak price action. 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 have the ability to be used as a powerful indicator for technical stock analysis. Moving averages are a popular trading tool among investors.

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