Is Basic Energy Services (BAS)’s Price Index Saturation Running on Empty?

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Investors monitoring the Gordson Hollis Price Index Saturation levels on shares of Basic Energy Services (BAS) are taking a closer look as a key level has been reached. After a recent review, the reading is currently E (Empty), revealing a strong sell trend. Gordon Hollis created the Price Index Saturation indicator in 1998. 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 as Full or Empty.  When presenting the theory, Gordson Hollis believed that PIS levels were best grouped in what he labeled “bougets”.

Basic Energy Services (BAS) shares have traded down the past week in the red, yielding negative results for the shares at they ticked -7.87%. In taking a look at recent performance, we can see that shares have moved -33.06% over the past 4-weeks, -67.78% over the past half year and -78.92% over the past full year.

Individual investors have the tendency to migrate towards certain stock strategies that have been successful in the past. While following previous strategies may be profitable, investors have to be ready for sudden market changes. Most investors will rejoice when stocks in the portfolio catch a hot streak. On the opposite side, investors may become highly dejected when they experience a prolonged losing streak. Sometimes, previously successful strategies run their course and they no longer work. Investors may benefit greatly from being able to make alterations when the market takes a turn for the worse. 

Investors may be tracking certain levels on shares of Basic Energy Services (BAS). The current 50-day Moving Average is 4.36, the 200-day Moving Average is 7.11, and the 7-day is noted at 3.38. 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. Basic Energy Services (BAS) currently has a 14-day Commodity Channel Index (CCI) of -113.41. 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 Basic Energy Services (BAS) is 30.99. 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.

Investing in the equity market has traditionally offered higher returns than other types of investments. With the higher potential for returns, there is also a higher exposure factor. Investors typically should look into address their own personal exposure situation before jumping into the market. Figuring out exposure appetite can assist when choosing which types of stocks to buy. Some investors will decide that they want to take a chance on certain stocks that have the potential to outperform in the future. Other investors may opt to play it safe and build a portfolio with low exposure, staple stocks. 

The Relative Strength Index (RSI) is one of multiple trendy 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 season. 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 35.55, the 7-day is at 36.42, and the 3-day is spotted at 45.32 for Basic Energy Services (BAS).

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