Eagle Bulk Ship New (EGLE) market momentum is building as the Awesome Oscillator (AO) is showing a down-trend in the name over the past 5 bars. Awesome Oscillator shows the difference in between the 5 SMA and 34 SMA. If to be precise, 5 SMA of midpoints is subtracted from 34 SMA of midpoints which allows to see the market momentum. Awesome Oscillator buy signals are created when the indicator crosses from below 0 to above 0, and sell signals when reversed. The oscillator changes from green (upward movement) to red (downward movement) and back to green again. The oscillator was developed by Bill Williams and outlined in his book titled “New Trading Dimensions”.
Inexperienced investors may have the tendency to purchase stocks that have recently been on a big run higher. This may be a result of not paying close attention to the fundamentals, or simply hoping that the stock will continue the move higher. Buying after a big move to the upside may mean that the investor is essentially paying too much for the stock at those levels. Sometimes a stock will take off and get too far ahead of its underlying value which may result in the price being overvalued. Keeping a close eye on the fundamentals may be a good way for the investor to know where the stock stands at any point in time.
Sharp investors may be looking to examine additional technical indicators such as the the Williams Percent Range or Williams %R. Developed by Larry Williams, this indicator helps spot overbought and oversold market conditions. The Williams %R shows how the current closing price compares to previous highs/lows over a specified period. Eagle Bulk Ship New (EGLE)’s Williams Percent Range or 14 day Williams %R is sitting at -71.70. Typically, if the value heads above -20, the stock may be considered to be overbought. On the flip side, if the indicator goes under -80, this may signal that the stock is oversold.
Another technical indicator that might serve as a powerful resource for measuring trend strength is the Average Directional Index or ADX. The ADX was introduced by J. Welles Wilder in the late 1970’s and it has stood the test of time. The ADX is typically used in conjunction with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to help spot trend direction as well as trend strength. At the time of writing, the 14-day ADX for Eagle Bulk Ship New (EGLE) is noted at 30.44. Many technical 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.
Investors may use various technical indicators to help spot trends and buy/sell signals. Presently, Eagle Bulk Ship New (EGLE) has a 14-day Commodity Channel Index (CCI) of -50.17. 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.
Taking a look at other technical levels, the 3-day RSI stands at 44.30, the 7-day sits at 39.51 and the 14-day (most common) is at 38.56. The Relative Strength Index (RSI) is an often employed momentum oscillator that is used to measure the speed and change of stock price movements. When charted, the RSI can serve as a visual means to monitor historical and current strength or weakness in a certain market. This measurement is based on closing prices over a specific period of time. As a momentum oscillator, the RSI operates in a set range. This range falls on a scale between 0 and 100. If the RSI is closer to 100, this may indicate a period of stronger momentum. On the flip side, an RSI near 0 may signal weaker momentum. The RSI was originally created by J. Welles Wilder which was introduced in his 1978 book “New Concepts in Technical Trading Systems”.
Keeping an eye on Moving Averages, the 50-day is 4.89, the 200-day is at 4.82, and the 7-day is 4.17 for Eagle Bulk Ship New (EGLE). Moving averages have the ability to be used as a powerful indicator for technical stock analysis. Following multiple time frames using moving averages can help investors figure out where the stock has been and help determine where it may be possibly going. The simple moving average is a mathematical calculation that takes the average price (mean) for a given amount of time.
Investors hope that they won’t have to deal with stock picks that don’t pan out, but this happens quite often in the stock market. At some point, the investor may have to make the tough decision to sell a stock that previously had a lot of upward potential. Holding onto an underperforming stock can sometimes hurt the portfolio. Investors may be hesitant to let go of the stock long after it should have been sold. Tracking the underlying fundamentals can assist the investor with figuring out the proper time to buy or sell a particular stock. Mastering this aspect of investing may come with experience, but it may be highly beneficial for the long-term success of the portfolio.