RELIANCE POWER LTD. (RPOWER.BO)’s Trading Action Moving the Shares -2.91%

Shares of RELIANCE POWER LTD. (RPOWER.BO) are moving on volatility today -2.91% or -1.00 from the open. The BSE listed company saw a recent bid of 33.40 and 858025 shares have traded hands in the session.

When trading the stock market, investors constantly have to deal with volatility. There are many different reasons why markets may see increased volatility. Whether it is political change, economic events, or even natural disasters, there is always something brewing that has the ability to disrupt the market. When a big event happens, investors might be faced with challenges and be forced to react. Overreacting to market downturns may be common, but it may also hurt the health of the stock portfolio. When the stock market gets choppy and slides, investors may be tempted to quickly pull money out. Pulling out of positions based on specific events may be the right move sometimes, but investors may find that they missed out on gains that followed after a rebound. Staying disciplined and being prepared can help the investor ride out temporary market turbulence.

Taking a deeper look into the technical levels of RELIANCE POWER LTD. (RPOWER.BO), we can see that the Williams Percent Range or 14 day Williams %R currently sits at -39.74. 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.

Currently, the 14-day ADX for RELIANCE POWER LTD. (RPOWER.BO) is sitting at 12.14. 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.

For further review, we can take a look at another popular technical indicator. In terms of moving averages, the 200-day is currently at 39.10, the 50-day is 32.96, and the 7-day is resting at 33.66. Moving averages are a popular trading tool among investors. Moving averages can be used to help filter out the day to day noise created by other factors. MA’s may be used to identify uptrends or downtrends, and they can be a prominent indicator for detecting a shift in momentum for a particular stock. Many traders will use moving averages for different periods of time in conjunction with other indicators to help gauge future stock price action.

RELIANCE POWER LTD. (RPOWER.BO) currently has a 14-day Commodity Channel Index (CCI) of 61.39. 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.

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, RELIANCE POWER LTD.’s  14-day RSI is currently at 53.47, the 7-day stands at 52.98, and the 3-day is sitting at 40.60.

As any seasoned investor knows, markets can move up or down in the blink of an eye. Investors who attempt to beat the market without creating a plan may find themselves grasping at straws down the line. Building a plan that included the right level of risk may be different for every individual. Managing risk and staying on top of the stock portfolio can help investors ride out the storm when it eventually rolls in. Anybody who manages their own portfolio knows that it can be extremely challenging at times. Finding a consistent process that works when markets become volatile can be a big help to the investor. Controlling emotions and conducting the necessary research can help the investor make the difficult decisions when they crop up.