April 14 is a positive day so far for Energy Select Sector SPDR ETF (NYSEARCA:XLE) as the ETF is active during the day after gaining 1.1% to hit $71.41 per share. Since the open, shares have moved -2.69% after recently hitting the $27.46 mark. This indicator compares the closing price of a stock in relation to the highs and lows over a certain time period.
The Average Directional Index or ADX is a popular technical indicator created to help measure trend strength. The PSAR, Developed by Welles Wilder, is created to determine the point in time when there emerges a better than average probability of a trend switching directions. In general, an ADX value from 0-25 would indicate an absent or weak trend. ADX is charted as a line with values ranging from 0 to 100. ADAMCAPITAL Gestao de Recursos Ltda. bought a new stake in Financial Select Sector SPDR Fund in the fourth quarter valued at about $229,788,000. 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. A value of 25-50 would indicate a strong trend. Energy Select Sector SPDR comprises about 1.9% of Albion Financial Group UT's portfolio, making the stock its 15th biggest holding. Typically, if the value heads above -20, the stock may be considered to be overbought. A reading from -80 to -100 would indicate an oversold situation. As a momentum indicator, the Williams R% may be used with other technicals to help define a specific trend. RSI can be used to help spot overbought or oversold conditions. The RSI may be useful for spotting abnormal price activity and volatility. The permissible values for RMI lie in the range between 0 and 100. Traders may be paying close attention to the stock and looking out for possible bullish momentum. Used as a coincident indicator, the CCI reading above +100 would reflect strong price action which may signal an uptrend. After a recent check, the 14-day RSI is now at 45.51, the 7-day stands at 46.76, and the 3-day is sitting at 43.95.
Taking a look at another technical level, Financial Select Sector SPDR ETF:XLF presently has a 14-day Commodity Channel Index (CCI) of 68.08. The Williams %R oscillates in a range from 0 to -100.
When applying indicators for technical analysis, traders and investors might also want to check out the ATR or Average True Range. Many traders will use a combination of moving averages with different time frames to help review stock trend direction.
Shares of S&P Regional Banking ETF SPDR (KRE) have a 200-day moving average of 57.55. Investors may use the 200-day MA to help smooth out the data a get a clearer long-term picture.