Stock Focus: HINDUSTAN ORGANIC CHEMICALS LTD. (HOCL.BO) Lower -15.63% Over the Last Month

Handing the focus on shares of HINDUSTAN ORGANIC CHEMICALS LTD. (HOCL.BO) we have noted that the stock price has dropped -15.63% over the last month. Viewing back over the last half-year, we can see that the stock has changed 6.99%. Over the past year, shares have seen a change of -2.96%. Following recent price performance, shares have changed -2.75% over the last 5 trading days.

Equity market investing can sometimes become highly emotional. Being able to leave emotions out of the major investing decisions might be tricky, but it may end up being a portfolio savior down the road. Nobody wants to see a thoroughly researched stock pick underperform. Holding onto the hope that a certain stock has to bounce back may lead to later problems. Of course, it can be very challenging for humans to admit when a mistake was made. Finding the ability to detach from a position can be tough. Humans make mistakes, but being able to learn from those mistakes moving forward can assist with achieving long term success in the market.

Currently, the 14-day ADX for HINDUSTAN ORGANIC CHEMICALS LTD. (HOCL.BO) is sitting at 30.16. 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.

Interested traders may be keeping an eye on the Williams Percent Range or Williams %R. Williams %R is a leading technical indicator created by Larry Williams to assist identify overbought and oversold situations. Investors will commonly use Williams %R in conjunction with other trend indicators to assist spot possible stock turning points. HINDUSTAN ORGANIC CHEMICALS LTD. (HOCL.BO)’s Williams Percent Range or 14 day Williams %R currently sits at -78.12. In general, if the indicator goes above -20, the stock may be considered overbought. Alternately, if the indicator goes below -80, this may point to the stock being oversold.

The RSI, or Relative Strength Index, is a commonly used technical momentum indicator that compares price movement over time. The RSI was created by J. Welles Wilder who was striving to add up 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, the 14-day RSI is currently at 34.34, the 7-day stands at 35.89, and the 3-day is sitting at 50.75.

Investors may use various technical indicators to assist spot trends and buy/sell signals. At present, HINDUSTAN ORGANIC CHEMICALS LTD. (HOCL.BO) has a 14-day Commodity Channel Index (CCI) of -94.08. The CCI was developed by Donald Lambert. The assumption behind the indicator is that investment instruments move in cycles with highs and lows coming at certain periodic intervals. The original guidelines focused on creating buy/sell signals when the reading moved above +100 or below -100. Traders may also use the reading to identify overbought/oversold conditions.

One of the staple principles for investing is buy low and sell high. While this may sound obvious, many investors end up doing just the opposite. When dealing with the equity market, investors often have to be careful not to let their irrational side take over when making decisions. Investors may get caught up in the flurry when stocks are skyrocketing. The temptation to get on board and be part of the ride can lead to some ill-planned moves. Focusing on near-term movements might be included in the game plan for some, but for others, this may be distracting from the bigger picture and long-term plan. Stocks that become widely publicized and leading in the media may not be the right addition to the individual investor’s portfolio. Conducting the due diligence on any position can assist the investor make sure that they are getting in at a good time and price.

Moving average indicators are used widely for stock analysis. Many traders will use a combination of moving averages with different time frames to assist review stock trend direction. One of the more leading combinations is to use the 50-day and 200-day moving averages. Investors may use the 200-day MA to assist smooth out the data a get a clearer long-term picture. They may look to the 50-day or 20-day to get a better grasp of what is going on with the stock in the near-term. At present, the 200-day moving average is at 26.73 and the 50-day is 26.46.

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