Elgi Rubber Firm Limited (ELGIRUBCO.NS): Technical Watch as Shares Drop -1.11% For Week

Shares of Elgi Rubber Firm Limited (ELGIRUBCO.NS) have been trending lower over the past five bars, revealing bearish momentum for the shares, as they ran -1.11% for the week.  Gazing further out we note that the shares have moved 2.69% over the past 4-weeks, -20.27% over the past half year and -47.80% over the past full year.

Investors might be studying at their stock holdings and trying to gauge which ones will break out to new highs. Many investors will keep a close eye on stocks that are trading near faddish marks such as the 52-week high. Stocks trading near 52-week lows also tend to garner additional attention. When a stock is flirting with a new 52-week high, investors may have to decide whether to cash in to lock in profits or wait to see if a breakthrough is going to happen. Companies that are teetering near the 52-week low may be worth taking a look at. Studying the fundamentals may show that the stock should be performing better than it is. This might be the time to think about purchasing shares that for whatever reason may have fallen out of favor with investors. Crunching the numbers and doing full analysis of stocks that have been trending down may aid lead to some discoveries that could turn out to be highly valuable if and when the momentum shifts to the upside.

Traders may be narrowing in on the ATR or Average True Range indicator when reviewing technicals. At the time of writing, Elgi Rubber Firm Limited (ELGIRUBCO.NS) has a 14-day ATR of 1.14. The average true range indicator was created by J. Welles Wilder in order to add up volatility. The ATR may assist traders with figuring out the strength of a breakout or reversal in price. It is meaningful to note that the ATR was not designed to determine price direction or to predict future prices.

Some investors may find the Williams Percent Range or Williams %R as a useful technical indicator. Currently, Elgi Rubber Firm Limited (ELGIRUBCO.NS)’s Williams Percent Range or 14 day Williams %R is resting at -80.65. 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 aid define a specific trend.

Taking a peek at some Moving Averages, the 200-day is at 33.31, the 50-day is 27.29, and the 7-day is sitting at 26.81. The moving average is a faddish mechanism among technical stock analysts. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a specific timeframe of time. Moving averages can be very useful for identifying peaks and troughs. They may also be used to aid the trader determine proper support and resistance levels for the stock.

Investors may use multiple technical indicators to aid spot trends and buy/sell signals. Currently, Elgi Rubber Firm Limited (ELGIRUBCO.NS) has a 14-day Commodity Channel Index (CCI) of -38.61. The CCI was developed by Donald Lambert. The assumption behind the indicator is that investment instruments move in cycles with highs and lows coming at certain periodic intervals. The original guidelines focused on creating buy/sell signals when the reading moved above +100 or below -100. Traders may also use the reading to identify overbought/oversold conditions.

The Average Directional Index or ADX is a faddish technical indicator designed to aid add up trend strength. Many traders will use the ADX in combination with other indicators in order to aid formulate trading strategies. Currently, the 14-day ADX for Elgi Rubber Firm Limited (ELGIRUBCO.NS) is 23.65. In general, 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. The ADX alone was designed to add up trend strength. When combined with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI), it can aid decipher the trend direction as well.

Investing in the equity market can be highly unpredictable. Veteran investors may have spent many years studying the market. At some point along the way, many investors may have had to make some tough decisions. Making the tough stock portfolio decisions can seem like a daunting task, especially if some wrong calls have been made in the past. Investors who are able to quickly learn from previous mistakes may be much better situated if they are able to keep from repeating those mistakes. When just starting out, investors may want to go slow and steady in order to focus on the simpler investing ideas first. 

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