Indicator Wire: Ultimate Oscillator Climbs Above 60 for MHG (MHG.AX)

Checking the levels for MHG (MHG.AX), we have made a note that the UO level is currently over 60. With the UO reading over 60, traders may be alerted that the stock is potentially in the overbought region.

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Checking in on some other technical levels, the 14-day RSI is currently at 68.47, the 7-day stands at 75.31, and the 3-day is sitting at 84.99. The RSI, or Relative Strength Index, is a commonly used technical momentum indicator that compares price movement over time. The RSI was created by J. Welles Wilder who was striving to measure whether or not a stock was overbought or oversold. The RSI may be useful for spotting abnormal price activity and volatility. The RSI oscillates on a scale from 0 to 100. The normal reading of a stock will fall in the range of 30 to 70. A reading over 70 would indicate that the stock is overbought, and possibly overvalued. A reading under 30 may indicate that the stock is oversold, and possibly undervalued.

When applying indicators for technical analysis, traders and investors might want to examine the ATR or Average True Range. The current 14-day ATR for MHG (MHG.AX) is currently sitting at 0.02. The ATR basically measures the volatility of a stock on a day-to-day basis. The average true range is typically based on 14 periods and may be calculated daily, weekly, monthly, or intraday. The ATR is not considered a directional indicator, but it may reflect the strength of a particular move.

MHG (MHG.AX) currently has a 14-day Commodity Channel Index (CCI) of 185.55. Active investors may choose to use this technical indicator as a stock evaluation tool. Used as a coincident indicator, the CCI reading above +100 would reflect strong price action which may signal an uptrend. On the flip side, a reading below -100 may signal a downtrend reflecting weak price action. 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.

The Williams Percent Range or Williams %R is a technical indicator that was designed to measure overbought and oversold market conditions. The Williams %R indicator helps show the relative situation of the current price close to the period being observed. MHG (MHG.AX)’s Williams Percent Range or 14 day Williams %R presently is at 0.00. 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.

Moving averages can help spot trends and price reversals. They may also be used to help find support or resistance levels. Moving averages are considered to be lagging indicators meaning that they confirm trends. A certain stock may be considered to be on an uptrend if trading above a moving average and the average is sloping upward. On the other side, a stock may be considered to be in a downtrend if trading below the moving average and sloping downward. Shares of MHG (MHG.AX) have a 7-day moving average of 3.15. Taking a glance at the relative strength indictor, we note that the 14-day RSI is currently at 68.47, the 7-day stands at 75.31, and the 3-day is sitting at 84.99.

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