Exosphere Technolog (ESPH) Charts Showing Bearish Signals

Exosphere Technolog (ESPH) shares are on chartist’s watch as the stock is edging below the MACD Histogram zero line.  Current levels place the share price around 0.0030, while the MACD indicates a bearish trend.

The MACD-Histogram is an indicator of an indicator. In fact, MACD is also an indicator of an indicator. This means that the MACD-Histogram is four steps removed from the price of the underlying security. In other words, it is the fourth derivative of price.

  • First derivative: 12-day EMA and 26-day EMA
  • Second derivative: MACD (12-day EMA less the 26-day EMA)
  • Third derivative: MACD signal line (9-day EMA of MACD)
  • Fourth derivative: MACD-Histogram (MACD less MACD signal line)

The base for this indicator is the security’s price. It takes four steps to get from the actual price to the MACD-Histogram. Chartists should keep this in mind when analyzing the MACD-Histogram. It is an indicator of an indicator. Therefore, it is designed to anticipate signals in MACD, which in turn is designed to identify changes in the price momentum of the underlying security.

The investing community is always using the terms bulls and bears. They are terms used to label market trends. Upward trends are considered bullish while downward trends are considered bearish. The overall market trend has been bullish for a long period of time. Trends can be long-term, short-term, or intermediate. These terms are used universally and may apply to entire markets or specific stocks. While there is money to be made in bull and bear markets, investors may want to concoct a stock strategy that will perform well during any conditions. Investors who are successful throughout any market conditions are typically highly focused, disciplined, and consistent with their trading maneuvers. Whether optimism or pessimism rules the sentiment, investors need to be able to capitalize when the time comes.

Taking a further look at some technicals, shares of Exosphere Technolog (ESPH) have a 200-day moving average of 0.01. The 50-day is 0.01, and the 7-day is sitting at 0.00. Using a wider time frame to assess the moving average such as the 200-day, may help block out the noise and chaos that is often caused by daily price fluctuations. In some cases, MA’s may be used as strong reference points for spotting support and resistance levels. Employing the use of the moving average for technical equity analysis is still highly popular among traders and investors. The moving average can be used as a reference point to assist with the discovery of buying and selling opportunities.

Exosphere Technolog (ESPH)’s Williams Percent Range or 14 day Williams %R currently sits at -100.00. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would point to an overbought situation. A reading from -80 to -100 would signal an oversold situation. The Williams %R was developed by Larry Williams. This is a momentum indicator that is the inverse of the Fast Stochastic Oscillator.

Exosphere Technolog (ESPH) currently has a 14-day Commodity Channel Index (CCI) of -145.09. 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.

Currently, the 14-day ADX for Exosphere Technolog (ESPH) is sitting at 18.99. 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.

Many traders will build a system to use when entering the market. Many trading systems will work for a time, but they may need to be tweaked at some point in order to adapt to the current market environment. Successful trading systems usually require a great deal of discipline. The best traders are often able to become highly skilled at managing risk and securing profits. For new traders, it may be tempting to use a system that a friend or colleague recommends. This may work for some, but many individuals might eventually realize that the style or system does not particularly suit their trading style. 

The RSI, or Relative Strength Index, is a widely 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. After a recent check, the 14-day RSI is currently at 37.66, the 7-day stands at 28.80, and the 3-day is sitting at 13.13.

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