Technicals Placed Under Review For Shares of iShares STOXX Europe 600 Telecommunications UCITS ETF (DE) (EXV2.DE)

Company shares of iShares STOXX Europe 600 Telecommunications UCITS ETF (DE) (EXV2.DE) have seen the Rank Correlation Indicator climb higher over the past 3 trading days, suggesting that it could be nearing a turning point if the reading crosses the 80 mark.  

The Rank Correlation Indicator, or RCI will find the highest high and the lowest low with a given range and will find out if the security is over or undervalued. It is very much like Stoachastic but with different time periods.  Created by Charles Spearman, the indicator oscillates between +100 and -100. At +100 there is a maximum positive correlation between rising price and date. However, if the indicator shows -100, the price falls continuously while the date continues to rise. There is hence a maximum negative correlation. The interpretation is analogous to that for other oscillators. If RCI is higher than 80 (overbought), then a sell signal is triggered, and if RCI is lower than -80 (oversold), a buy signal is given.

Investors may be looking ahead to the next round of company earnings reports. Following the numbers may assist investors when attempting to do stock research. Many investors will closely follow the results to see how far off they are from the most recent analyst estimates. Analysts may be busy updating estimates before and after company earnings reports. Investors have the option of following analyst projections in order to help gauge how the sell-side is viewing company prospects. Many investors will also choose to follow analyst buy, sell, and price target recommendations.

Let’s also take a look at some additional technical levels on shares of iShares STOXX Europe 600 Telecommunications UCITS ETF (DE) (EXV2.DE). The current 14-day RSI is noted at 70.97, the 7-day is 86.12, and the 3-day is seen at 96.69. 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. 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.

Traders may be focusing on other technical indicators for stock assessment. Presently, iShares STOXX Europe 600 Telecommunications UCITS ETF (DE) (EXV2.DE) has a 14-day Commodity Channel Index (CCI) of 186.83. The CCI technical indicator can be used to help determine if a stock is overbought or oversold. CCI may also be used to help discover divergences that could possibly signal reversal moves. A CCI closer to +100 may provide an overbought signal, and a CCI near -100 may offer an oversold signal. Investors may be watching other technical indicators such as the Williams Percent Range or Williams %R. The Williams %R is a momentum indicator that helps measure oversold and overbought levels. This indicator compares the closing price of a stock in relation to the highs and lows over a certain time period.

A common look back period is 14 days. iShares STOXX Europe 600 Telecommunications UCITS ETF (DE) (EXV2.DE)’s Williams %R presently stands at -0.75. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would indicate an overbought situation. A reading from -80 to -100 would indicate an oversold situation.

Currently, the 14-day ADX for iShares STOXX Europe 600 Telecommunications UCITS ETF (DE) (EXV2.DE) is sitting at 19.67. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would identify a very strong trend, and a value of 75-100 would lead to an extremely strong trend. ADX is used to gauge trend strength but not trend direction. Traders often add the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of a trend.

A widely 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 spotting peaks and troughs. They may also be used to help the trader figure out reliable support and resistance levels for the stock. Currently, the 200-day MA is sitting at 22.01.

Investors often have to figure out how aggressive they want to be when getting into the stock market. There are individuals who may have had some initial success based on random luck, but diving without preparation can leave investors on the short end of the stick in the long run. Investors may be tempted by the next hot stock that is being talked about around the water cooler. Investors might not realize how risky a certain stock may be, and they may find out that the over performer has already made the run. Doing all the homework may involve tracking technicals, fundamentals, current economic data, and earnings releases. Putting in the time to do the proper research may help the investor see profits down the road.