European government bond yields moved higher at midday Wednesday, led by a surge in Gilt yields after stronger-than-expected labor market data. The 10-year Gilt was recently up 5.1 basis points at 1.535%, while the 2-year rose 6.2 bp to 0.932% ahead of Thursday’s Bank of England meeting.
The 10-year Bund yield rose 1.8 bp, with Bunds outperforming as Eurozone spreads widened. In contrast to the UK, the German yield curve steepened as the long end underperformed.
Eurozone stock markets were narrowly mixed ahead of the Federal Reserve policy announcement later Wednesday. Markets remain on edge that the Fed could accelerate its current rate-hike path. The UK FTSE 100 underperformed other European stock markets, reflecting the action in Gilts.
Reviewing the technicals on shares of Pennantpark Fltng Rt (PFLT), we have recently spotted the Chaikin Oscillator below zero. Traders may be following the stock over the next few sessions to watch for any potential signs of bearish momentum.
As the next round of earnings reports come into the spotlight next quarter, investors may be deciding how to get into the best position to make the most profitable trades. Earnings reports have the ability to influence stock prices dramatically. Sometimes it can be hard to figure out which way the price will go even if the reported numbers are up to snuff. Some investors enjoy the frantic trading opportunities around earnings reports, and others will stay as far away as possible. Even if the investor isn’t planning on making any moves during earnings season, it may be wise to follow what companies are reporting. If the numbers from a certain holding come in way out of whack, it may be necessary to do some in-depth research to try and find out the reason. Investors that make sure that all the bases are covered will typically find it easier to make sense out of certain anomalies that pop up in the markets from time to time. Putting in the extra time and effort to understand the ins and outs of a particular stock may help boost the novice investor up to the next level. Every investor wants their trades to be profitable, and doing that little extra piece of homework could be just what the finance doctor ordered for staying on top of the stock market.
Some investors may find the Williams Percent Range or Williams %R as a helpful technical indicator. Presently, Pennantpark Fltng Rt (PFLT)’s Williams Percent Range or 14 day Williams %R is resting at -72.73. Values can range from 0 to -100. A reading between -80 to -100 may be typically viewed as strong oversold territory. A value between 0 to -20 would represent a strong overbought condition. As a momentum indicator, the Williams R% may be used with other technicals to help define a specific trend.
A commonly used 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 certain period of time. Moving averages can be very helpful for identifying peaks and troughs. They may also be used to assist the trader figure out proper support and resistance levels for the stock. Currently, the 200-day MA is sitting at 13.11.
We can also do some further technical analysis on the stock. At the time of writing, the 14-day ADX for Pennantpark Fltng Rt (PFLT) is 18.45. 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.
Taking a glance at the relative strength indictor, we note that the 14-day RSI is currently at 51.30, the 7-day stands at 52.05, and the 3-day is sitting at 72.27. The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of stock price movements. The RSI was developed by J. Welles Wilder, and it oscillates between 0 and 100. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70. RSI can be used to detect general trends as well as finding divergences and failure swings.
At the time of writing, Pennantpark Fltng Rt (PFLT) has a 14-day Commodity Channel Index (CCI) of -30.32. Developed by Donald Lambert, the CCI is a versatile tool that may be used to help spot an emerging trend or provide warning of extreme conditions. CCI generally measures the current price relative to the average price level over a specific time period. CCI is relatively high when prices are much higher than average, and relatively low when prices are much lower than the average.
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