Tracking moving averages is one of the most universally used techniques for performing technical stock analysis. Checking on some levels for Safeguard Scientifics (SFE), the 50-day Moving Average is currently 13.35, the 200-day Moving Average is 12.41, and the 7-day is standing at 12.68. Moving averages use a series of historical data combined with the current stock price for calculation. Traders may find value in combining multiple time periods using moving averages to help compare how the equity is faring on a long-term and short-term basis. Many investors may use MA’s as a way to develop support and resistance levels in order to spot specific trade entries and exits.
Traders may also be paying close attention to RSI levels on shares of Safeguard Scientifics (SFE). The current 14-day RSI is presently sitting at 40.44, the 7-day is 39.94, and the 3-day is 41.69. The RSI, or Relative Strength Index is a popular oscillating indicator among traders and investors. The RSI operates in a range-bound area with values between 0 and 100. When the RSI line moves up, the stock may be experiencing strength. The opposite is the case when the RSI line is heading lower. Different time periods may be used when using the RSI indicator. The RSI may be more volatile using a shorter period of time. Many traders keep an eye on the 30 and 70 marks on the RSI scale. A move above 70 is widely considered to show the stock as overbought, and a move below 30 would indicate that the stock may be oversold. Traders may use these levels to help identify stock price reversals.
When completing stock analysis, investors and traders may opt to review other technical levels. Safeguard Scientifics (SFE) currently has a 14-day Commodity Channel Index (CCI) of -59.46. Investors and traders may use this indicator to help spot price reversals, price extremes, and the strength of a trend. Many investors will use the CCI in conjunction with other indicators when evaluating a trade. The CCI may be used to spot if a stock is entering overbought (+100) and oversold (-100) territory. The Average Directional Index or ADX is often considered to be an important tool for technical trading or investing. The ADX is a technical indicator developed by J. Welles Wilder used to determine the strength of a trend. The ADX is often used along with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of the trend. Presently, the 14-day ADX is resting at 19.30.
Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would signal a very strong trend, and a value of 75-100 would indicate an extremely strong trend.
With most major indexes showing strength, it is safe to assume that many investors may have their heads in the clouds. With many stocks frequently hitting new milestone highs, investors may be scrambling to make sure that they aren’t missing out on possible returns. Maybe some stocks have been doing well, but others not in the portfolio have been doing much better. There is rarely any substitute for hard work and dedication. Investors may get complacent with stocks that they are familiar with. Branching out into uncharted waters may help broaden the horizon and start the gears grinding for new trading ideas. Traders and investors will no doubt be closely monitoring the markets as we move into the second half of the year. It remains to be seen whether optimism or pessimism will rule going in to the next round of quarterly earnings reporting.