After a recent look, Wealth Defender Equities Ltd (WDE.AX) has a 50-day Moving Average of 0.81, the 200-day Moving Average is 0.80, and the 7-day is noted at 0.83. 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 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.
Traders may be relying in part on technical stock analysis. Wealth Defender Equities Ltd (WDE.AX) currently has a 14-day Commodity Channel Index (CCI) of -14.14. Despite the name, CCI can be used on other investment tools such as stocks. The CCI was designed to typically stay within the reading of -100 to +100. 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.
At the time of writing, the 14-day ADX for Wealth Defender Equities Ltd (WDE.AX) is 52.62. Many technical chart analysts believe that an ADX value over 25 would suggest a strong trend. A reading 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.
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. The 14-day RSI is currently sitting at 51.36, the 7-day is at 45.78, and the 3-day is spotted at 30.64 for Wealth Defender Equities Ltd (WDE.AX).
Typically bull markets are times when investors may be willing to be a bit more speculative with stock selection. Managing risk is generally at the forefront of many strategies. Investors trying to shift the odds in their favor may be searching for the perfect balance and diversification to help mitigate the risk and enjoy healthier profits. With so many different stocks to choose from, it may take a while to zoom in or a particular set. Investors will also be watching the next wave of economic data to get a better sense of how the overall economy is fairing. With so much noise in the markets, it may be necessary to narrow the gaze in order to set the table for success. Investors may be on the lookout for the major catalyst that either keeps the bulls charging into the second half the year, or wakes up the sleeping bears.