Revlon Inc (REV) placed on investor’s radar this week as the lagging Chikou 26 day line has dropped below Ichimoku’s Tenkan line, creating an environment ripe for a reversal. If the current close price (as depicted by the chikou span) is lower than the price of 26 periods ago, that would indicate that there is a potential for more bearish price action to come, since price tends to follow trends. Conversely, if the current closing price is above the price of 26 periods ago, that would then indicate the possibility for more bullish price action to follow. The Ichimoku signals, indeed all Ichimoku elements, should never be taken in isolation, but considered in the context of the overall chart. Ichimoku Kinko Hyo is a visual technical analysis system and the charts are designed to be considered in their entirety, with regard given to the relationships between all of the elements, including the price. As such, Ichimoku is not suitable for automated or “single event” decision making.
Investors paying close attention to the daily ebbs and flows of the stock market may be trying to guess which way momentum will swing into the next couple of months. Finding those stocks that are ready to ride the lightning may not be the easiest task with markets chugging along near all time highs. Investors may have to first figure out how much risk they want to take on when picking the next round of stocks. Once the risk appetite is determined, investors can start to decide whether they think it is best to go with the flow or buck the trend. Either way, paying attention to short-term and long-term price moves may help paint a clearer picture of what is happening with a particular stock. Maybe those stocks that were sure-fire winners a few months ago have lost some steam. Adjusting the portfolio may or may not be necessary, but knowing exactly what stocks are owned and how they are performing may help with additional decision making along the way. Of course nobody wants to be on the outside looking in as a stock is taking off, but there should be plenty of other opportunities in the future. Staying current with global economic conditions and keeping a finger on the pulse of the company during earnings season can help shed some light on where the stock may be headed next.
Presently, Revlon Inc (REV) has a 14-day ATR of 1.38. The Average True Range is widely used metric that helps gauge the volatility of a particular stock. The ATR is not used to measure price direction, just to measure volatility. The ATR is an indicator developed by J. Welles Wilder. Wilder has developed multiple indicators that are still quite popular in today’s investing landscape. The general interpretation of the ATR is the higher the ATR value, the higher the volatility.
The Williams Percent Range or Williams %R is another technical indicator worth checking out. Revlon Inc (REV) currently has a 14 day Williams %R of -94.46. 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 technical analysis indicator used to discern if a market is trending or not trending. The ADX alone measures trend strength but not direction. Using the ADX with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) may help determine the direction of the trend as well as the overall momentum. Many traders will use the ADX alongside other indicators in order to help spot proper trading entry/exit points. Currently, the 14-day ADX for Revlon Inc (REV) is 26.73. Generally speaking, 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.
Traders may be leaning on technical stock analysis to help with investing decisions. Revlon Inc (REV) currently has a 14-day Commodity Channel Index (CCI) of -110.78. Despite the name, CCI can be used on other investment tools such as stocks. The CCI was designed to typically stay within the reading of -100 to +100. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction. On the other hand, a reading of -100 would imply that the stock is oversold and possibly set for a rally.
Traders are paying renewed attention to shares of Revlon Inc (REV). The current 14-day RSI is presently sitting at 22.69, the 7-day is 14.06, and the 3-day is 12.36. The RSI, or Relative Strength Index is a popular oscillating indicator among traders and investors. The RSI operates in a range-bound area with values between 0 and 100. When the RSI line moves up, the stock may be experiencing strength. The opposite is the case when the RSI line is heading lower. Different time periods may be used when using the RSI indicator. The RSI may be more volatile using a shorter period of time. Many traders keep an eye on the 30 and 70 marks on the RSI scale. A move above 70 is widely considered to show the stock as overbought, and a move below 30 would indicate that the stock may be oversold. Traders may use these levels to help identify stock price reversals.
Investors will be closely tracking stock market movements over the next few months. As we break into the second part of the year, many will be researching what they did right and what they did wrong in the first half. Recent market action may have investors questioning if a major pullback is on the horizon, or if momentum will turn back to the upside. Investors will have to determine if any tweaks will need to be made to the portfolio. If the economic data continues to display optimism, investors may be able to confidently make some moves to help bolster returns. Over the next few quarters, investors will be hoping that modest gains can turn into major gains.
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