STANDARD CAPITAL MARKETS LTD. (STANCAP.BO) touched its lower 7-day moving average bollinger band. Investors will be paying close attention to the shares to see if they will experience a bounce off the bottom or continue the downward near-term trend.
Developed by technical analyst John Bollinger in the 1980s, Bollinger Bands identify the degree of real-time volatility for a currency pair. Traders keep a close eye on volatility because a sudden increase in volatility levels is often the prelude to a market trend reversal. Bollinger Bands are placed over a price chart and consist of a moving average together with upper and lower bands that define pricing “channels”.
The initial bottom of this formation tends to have substantial volume and a sharp price pullback that closes outside of the lower bollinger band. These types of moves typically lead to what is called an “automatic rally.” The high of the automatic rally tends to serve as the first level of resistance in the base building process that occurs before the stock moves higher.Tracking additional stock levels, STANDARD CAPITAL MARKETS LTD. (STANCAP.BO) has a 14-day Commodity Channel Index (CCI) of -247.06. Even though the name contains the word commodity, CCI can be used on other investment tools such as stocks. The CCI was developed to typically stay within the -100 to +100 levels. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction. On the other hand, a reading of -100 would imply that the stock is oversold and possibly set for a rally.
A popular tool among technical stock analysts is the moving average. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a certain period of time. They may also be used to assist the trader figure out proper support and resistance levels for the stock. Currently, STANDARD CAPITAL MARKETS LTD. (STANCAP.BO) has a 200-day MA of 2.47, and a 50-day of 2.50. Presently, the stock has a 14-day RSI of 37.72, the 7-day is sitting at 24.64, and the 3-day is resting at 8.31. The Relative Strength Index (RSI) is one of multiple popular technical indicators created by J. Welles Wilder. Wilder introduced RSI in his book “New Concepts in Technical Trading Systems” which was published in 1978. RSI measures the magnitude and velocity of directional price movements. The data is represented graphically by fluctuating between a value of 0 and 100. The indicator is computed by using the average losses and gains of a stock over a certain time period. RSI can be used to help spot overbought or oversold conditions. An RSI reading over 70 would be considered overbought, and a reading under 30 would indicate oversold conditions. A level of 50 would indicate neutral market momentum.
STANDARD CAPITAL MARKETS LTD. (STANCAP.BO)’s Williams Percent Range or 14 day Williams %R presently is at -100.00. In general, if the reading goes above -20, the stock may be considered to be overbought. Alternately, if the indicator goes under -80, this may show the stock as being oversold. We can also take a look at the Average Directional Index or ADX of the stock. For traders looking to capitalize on trends, the ADX may be an essential technical tool. The ADX is used to measure trend strength. ADX calculations are made based on the moving average price range expansion over a specified amount of time. ADX is charted as a line with values ranging from 0 to 100. The indicator is non-directional meaning that it gauges trend strength whether the stock price is trending higher or lower. The 14-day ADX for STANDARD CAPITAL MARKETS LTD. (STANCAP.BO) presently sits at 26.28. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would indicate a very strong trend, and a value of 75-100 would signify an extremely strong trend.