Trading Watch: Chaikin Oscillator Below Zero for Kagera Nickel Limited (KNL.AX)

Tracking shares of Kagera Nickel Limited (KNL.AX), we have seen that the Chaikin Oscillator reading is currently below zero. Traders following the stock may be on the lookout for possible bearish momentum.

The direction of share market moves in the short-term are highly unpredictable. Many investors will be tempted to ride the wave whether the trend is buying or selling. Fearful investors may make hasty decisions such as panic buying or selling. Investors may feel compelled to buy stocks after a major run higher. This can be related to the fear or missing out. On the other end, investors may be quick to sell quality stocks when the market is in the midst of a broad sell-off. This behavior often translates into falling into the trap of buying high and selling low. 

Kagera Nickel Limited (KNL.AX) currently has a 14-day Commodity Channel Index (CCI) of -190.24. Dedicated investors may pick to use this technical indicator as a stock evaluation gizmo. 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.

Currently, the 14-day ADX for Kagera Nickel Limited (KNL.AX) is sitting at 14.37. 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.

Tracking other technical indicators, the 14-day RSI is at present standing at 35.45, the 7-day sits at 28.16, and the 3-day is resting at 16.10 for Kagera Nickel Limited (KNL.AX). The Relative Strength Index (RSI) is an often employed momentum oscillator that is used to sum the speed and change of stock price movements. When charted, the RSI can serve as a visual means to monitor historical and current strength or weakness in a certain market. This measurement is based on closing prices over a specific duration of time. As a momentum oscillator, the RSI operates in a set range. This range falls on a scale between 0 and 100. If the RSI is closer to 100, this may indicate a duration of stronger momentum. On the flip side, an RSI near 0 may signal weaker momentum. The RSI was originally created by J. Welles Wilder which was introduced in his 1978 book “New Concepts in Technical Trading Systems”.

Taking a peek at some Moving Averages, the 200-day is at 0.15, the 50-day is 0.13, and the 7-day is sitting at 0.12. The moving average is a leading gizmo among technical stock analysts. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a specific 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.

Kagera Nickel Limited (KNL.AX)’s Williams Percent Range or 14 day Williams %R at present is at -100.00. In general, if the reading goes above -20, the stock may be considered to be overbought. Alternately, if the indicator goes under -80, this may show the stock as being oversold. The Williams %R indicator helps show the relative situation of the current price close to the duration being observed.

One of the biggest mistakes that can plague the individual investor is not setting up an overall investment plan. Investors may want to start out be setting up an outline of overall goals. Having goals can eventually make the day to day investing decisions at little bit smoother over time. Once a plan is in place, investors can then spend more time focusing on the proper stocks to add to the portfolio. Dedicating time for extensive stock research may not be easy, but it may put the investor in a better position. Some investors will go to greater lengths, such as making sure that they have a good reason behind every buy or sell decision. This process may seem unnecessary to some, but it may assist the investor remain focused when the market gets choppy and tough decisions have to be made.

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