Buy, Sell or Hold? A Look at What the Technicals Are Saying About Insecticides (India) Limited (INSECTICID.NS)

Firm shares of Insecticides (India) Limited (INSECTICID.NS) 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 are always striving to find the next great stock to add to the portfolio. Finding that next winner may involve some dedicated research and perseverance. Sorting through the immense amount of information about public companies can be a chore. Many sharp investors will attack the equity markets from many various angles. This may encompass keeping close tabs on fundamental and technical data. This may also include monitoring expert opinions and tracking institutional transactions.  

In addition to the RCI, investors may be viewing to compare the current stock price of Insecticides (India) Limited (INSECTICID.NS) to some of its moving averages. After a recent check, the 200-day MA is resting at 615.29, and the 50-day is 586.07. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a specific season of time. Moving averages can be very useful for identifying peaks and troughs. They may also be used to assist the trader think through proper support and resistance levels for the stock.

The 14-day ADX for Insecticides (India) Limited (INSECTICID.NS) is currently at 22.72. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would signify a very strong trend, and a value of 75-100 would point to an extremely strong trend. Checking in on some other technical levels, the 14-day RSI is currently at 59.63, the 7-day stands at 64.60, and the 3-day is sitting at 80.69. 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, Insecticides (India) Limited (INSECTICID.NS) has a 14-day Commodity Channel Index (CCI) of 169.19. Developed by Donald Lambert, the CCI is a versatile resource that may be used to assist 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 season. CCI is relatively high when prices are much higher than average, and relatively low when prices are much lower than the average. 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 calculate oversold and overbought levels. This indicator compares the closing price of a stock in relation to the highs and lows over a certain time season. A common look back season is 14 days. Insecticides (India) Limited (INSECTICID.NS)’s Williams %R currently stands at -18.94. 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.

Investors are constantly trying to make smart moves in the share market. Taking stock of personal strengths and weaknesses can assist the investor attack the market with heightened focus. frequently, individuals may fall into traps that could have been avoided. Coming up with a sound investment plan and setting realistic expectations may assist the beginner investor become better prepared and focused. Positive returns are attainable with the proper preparation and dedication. Investors working with a longer-term plan might be approaching the share market from a completely different angle than a shorter-term trader. Investors who plan to be in the market for a long season of time may not be as concerned about the day to day fluctuations as short-term traders. 

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