Sizing up Drdgold Ltd (DRD)’s Gordson Hollis PIS Indicator
Investors may be tracking historical Gordson Hollis Price Index Saturation levels on shares of Drdgold Ltd (DRD). 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 equity 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 equity market.
In surveying at recent price history, Drdgold Ltd (DRD) have been trending lower over the past five bars, revealing bearish momentum for the shares, as they ran -1.55% for the week. Studying further out we note that the shares have moved 6.11% over the past 4-weeks, -18.38% over the past half year and -27.65% over the past full year.
Investors might be surveying to rebuild the portfolio as we move into the second half of the year. New investors can be tempted to try to maximize returns by holding one specific sector or be exposed to a fairly large single investment. By diversifying the portfolio, investors might be able to protect themselves from a sudden move against the position. Finding the correct portfolio balance is how many investors select to approach the markets. This may take some time to master, and there may be some bumps along the way. Investors managing their own money may want to make sure that they know explicitly what stocks are in the portfolio at all times. Keeping tabs on portfolio performance can also be a good way to make sure that it is weighted properly.
Drdgold Ltd (DRD) currently has a 14 day Williams %R of -68.75. In general, if the level goes above -20, the stock may be considered to be overbought. Alternately, if the indicator goes under -80, this may signal that the stock is oversold. The Williams Percent Range or Williams %R is a technical indicator that was developed to add up overbought and oversold market conditions. The Williams %R indicator helps show the relative situation of the current price close to the duration being observed.
We can also take a look at the Average Directional Index or ADX of Drdgold Ltd (DRD). The ADX is used to add up trend strength. ADX calculations are made based on the moving average price range expansion over a specified amount of time. ADX is charted as a line with values ranging from 0 to 100. The indicator is non-directional meaning that it gauges trend strength whether the stock price is trending higher or lower. The 14-day ADX right now sits at 23.60. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would indicate a very strong trend, and a value of 75-100 would signify an extremely strong trend. At the time of writing, Drdgold Ltd (DRD) has a 14-day Commodity Channel Index (CCI) of -91.16. Developed by Donald Lambert, the CCI is a versatile mechanism that may be used to assist spot an emerging trend or provide warning of extreme conditions. CCI generally measures the current price relative to the average price level over a specific time duration. CCI is relatively high when prices are much higher than average, and relatively low when prices are much lower than the average.
A commonly used mechanism 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 duration of time. Moving averages can be very useful for identifying peaks and troughs. They may also be used to assist the trader determine proper support and resistance levels for the stock. Currently, the 200-day MA for Drdgold Ltd (DRD) is sitting at 2.21. 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 44.63, the 7-day is 45.55, and the 3-day is resting at 51.64.
Investing in the equity market will always involve some level of uncertainty. Investors often have to determine how much they are willing to uncertainty, and try to project what the potential reward could be. Taking on too much uncertainty may put the average investor out of their comfort zone. Finding that sweet spot for uncertainty appetite may assist investors get on the correct path to conquering the markets. As companies continue to report quarterly earnings, investors will be watching which companies post larger than expected surprises. Analysts will also be watching the numbers closely in order to make sense of the results and update estimates accordingly.