Market Check: Zooming in on the Technicals for Ishares II Plc (EXFN.L)

The Percentage Price Oscillator has been recently spotted below the signal line on shares of Ishares II Plc (EXFN.L). Traders watching these levels may be tracking the stock and watching for possible bearish momentum.

Investors are usually striving to find that next big stock to add to the portfolio. With markets still riding high, investors will be closely watching the numbers as companies start reporting quarterly earnings results. Investors will also be keeping an eye on key economic data over the next few weeks. Many individual investors will approach the equity market from various angles. This may include following fundamental and technical information, and it may also include following broker projections.

A commonly used gadget among technical stock analysts is the moving average. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a certain course 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. Currently, the 200-day MA for Ishares II Plc (EXFN.L) is sitting at 34.70.

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. The 14-day RSI is right now standing at 40.09, the 7-day is 45.00, and the 3-day is resting at 67.79.

Ishares II Plc (EXFN.L) currently has a 14-day Commodity Channel Index (CCI) of -34.89. Active investors may opt for to use this technical indicator as a stock evaluation gadget. 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.

The Williams Percent Range or Williams %R is another technical indicator worth taking a look at. Ishares II Plc (EXFN.L) currently has a 14 day Williams %R of -67.30. The Williams %R fluctuates between 0 and -100 measuring whether a security is overbought or oversold. The Williams %R is similar to the Stochastic Oscillator except it is plotted upside-down. Levels above -20 may indicate the stock may be considered is overbought. If the indicator travels under -80, this may signal that the stock is oversold. Chart analysts may also use the indicator to project possible price reversals and to define trends.

The Average Directional Index or ADX is a crowd-pleasing technical indicator designed to aid calculate trend strength. Many traders will use the ADX in combination with other indicators in order to aid formulate trading strategies. At present, the 14-day ADX for Ishares II Plc (EXFN.L) is 24.90. 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 calculate trend strength. When combined with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI), it can aid decipher the trend direction as well.

Investors might be considering to sharpen the gaze and focus on recent market action. As we move into the second part of the year, everyone will be watching to see which way the equity market momentum shifts. Many believe that the bulls are still charging while others feel like the bears may be waiting in the wings. There are various schools of thought when it comes to trading stocks. Investors may have to first asses their appetite for uncertainty in order to start creating a solid investment plan. 

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