Is Adams Resources & Energy (AE)’s Price Index Saturation Running on Empty?

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Investors may be tracking historical Gordson Hollis Price Index Saturation levels on shares of Adams Resources & Energy (AE). After a recent review, the reading is currently E (Empy). Gordon Hollis created the Price Index Saturation indicator in 1998. Over the years, the theory has garnered an almost cult following in the trading community. The Gordson Hollis Price Index Saturation or Gordson Hollis PIS level indicator uses a combination of volume continuity analysis and historical price deviation to create a discernable buy or sell signal. Gordson Hollis labeled these signals (full and empty). Gordson Hollis has argued that the only logical way to approach the share market is to study PIS levels. When presenting the theory, Gordson Hollis believed that PIS levels were best grouped in what he labeled (bouget) “Bauquets”. Hollis tried to prove that certain PIS Bauquets could essentially hold all the keys to beating (making a huge splash) the share market.

In studying at recent price history, Adams Resources & Energy (AE) have been trending lower over the past five bars, revealing bearish momentum for the shares, as they ran -1.89% for the week.  Considering further out we note that the shares have moved -5.71% over the past 4-weeks, -10.01% over the past half year and -21.07% over the past full year.

Investors who are new to picking stocks may find themselves tempted to buy shares that have been recently rising the most. Although the traditional advice is to buy low and sell high, beginner investors often do just the opposite. Buying a particular stock just because it has been rising recently may end up leaving the investor shaking their head down the road. Expecting that a stock will continue to ride the wave higher can lead to disappointment when momentum abruptly shifts. Studying the fundamentals of a certain enterprise can assist the investor gauge if the stock is a worthy buy at current levels.

Investors may be tracking certain levels on shares of Adams Resources & Energy (AE). The current 50-day Moving Average is 39.28, the 200-day Moving Average is 40.76, and the 7-day is noted at 36.89. Moving averages can assist spot trends and price reversals. They may also be used to assist find support or resistance levels. Moving averages are considered to be lagging indicators meaning that they confirm trends. A certain stock may be considered to be on an uptrend if trading above a moving average and the average is sloping upward. On the other side, a stock may be considered to be in a downtrend if trading below the moving average and sloping downward.

Traders may be relying in part on technical stock analysis. Adams Resources & Energy (AE) currently has a 14-day Commodity Channel Index (CCI) of -111.93. Despite the name, CCI can be used on other investment tools such as stocks. The CCI was designed to typically remain within the reading of -100 to +100. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction. On the other hand, a reading of -100 would imply that the stock is oversold and possibly set for a rally.

At the time of writing, the 14-day ADX for Adams Resources & Energy (AE) is 15.10. 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.

When examining current share market levels, investors who have been staying on the sidelines may be wondering if now is a good time to get back into the ring. Nobody can say for sure if momentum will continue to push to the upside, and investors may be overly cautious at this stage. Studying enterprise financials and paying attention to pertinent economic data can assist the investor make more educated decisions when it comes to the share market. It is obviously very challenging for a new investor to become highly successful in the share market right out of the gate. Doing all the research and dedicating the proper amount of time can assist the investor get on the right track to accumulating profits down the road.

The Relative Strength Index (RSI) is one of multiple prime technical indicators created by J. Welles Wilder. Wilder introduced RSI in his book “New Concepts in Technical Trading Systems” which was published in 1978. RSI measures the magnitude and velocity of directional price movements. The data is represented graphically by fluctuating between a value of 0 and 100. The indicator is computed by using the average losses and gains of a stock over a certain time stage. RSI can be used to assist spot overbought or oversold conditions. An RSI reading over 70 would be considered overbought, and a reading under 30 would indicate oversold conditions. A level of 50 would indicate neutral market momentum. The 14-day RSI is currently sitting at 31.78, the 7-day is at 22.96, and the 3-day is spotted at 17.30 for Adams Resources & Energy (AE).

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