Momentum in Focus: Shares Below Chikou Phillips 66 (PSX)

At current levels, Phillips 66 (PSX) is trading below the Chikou. If the stock continues to stay under the line, traders could be projecting a possible downward momentum swing.

Learning to secure profits from trading the stock market can involve a lot of diligent work and focus. The more experienced a trader becomes, they may be find it easier to follow good trading techniques. Having a plan may be one of the most important aspects for trading the equity market. Without a plan, traders may find themselves in a bind when faced with difficult real world decisions. When these decisions have a direct impact on profits and losses, traders need to be able to make sure that they make the best possible moves in order to avoid disaster.

Let us focus on the Average Directional Index or ADX. The ADX measures the strength or weakness of a particular trend. Investors and traders may be looking to figure out if a stock is trending before employing a specific trading strategy. The ADX is typically used along with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) which point to the direction of the trend. The 14-day ADX for Phillips 66 (PSX) is currently at 45.64. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would signify a very strong trend, and a value of 75-100 would point to an extremely strong trend.

Phillips 66 (PSX) presently has a 14-day Commodity Channel Index (CCI) of -163.32. Typically, the CCI oscillates above and below a zero line. Normal oscillations tend to stay in the range of -100 to +100. A CCI reading of +100 may represent overbought conditions, while readings near -100 may indicate oversold territory. Although the CCI indicator was developed for commodities, it has become a popular tool for equity evaluation as well.

Checking on current RSI levels on shares of Phillips 66 (PSX), the 14-day RSI is currently standing at 52.60, the 7-day is at 34.04, and the 3-day is resting at 12.30. Relative Strength Index (RSI) is a frequently used technical analysis tool. RSI helps measure changes in price movement of a specific equity. RSI is a momentum oscillator that moves in a range from 0 to 100. RSI is generally used to interpret whether a stock is overbought or oversold. As a general rule, an RSI over 70 may indicate an overbought situation. On the other end of the spectrum, a reading under 30 may indicate an oversold situation.

Interested traders may be keeping an eye on the Williams Percent Range or Williams %R. Williams %R is a popular technical indicator created by Larry Williams to help identify overbought and oversold situations. Investors will commonly use Williams %R in conjunction with other trend indicators to help spot possible stock turning points. Phillips 66 (PSX)’s Williams Percent Range or 14 day Williams %R currently sits at -98.21. 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.

Investors may already be plotting the course for the next few quarters. Many investing decisions may need to be made after the next round of company earnings reports are released. Studying the numbers can help the investor see whether or not the stock’s prospects look good in the near term as well as the longer term. It remains to be seen whether optimism in the stock market will continue into the next year. Investors will closely be monitoring the major economic data reports over the next couple of months. While nobody can be sure which way the momentum will shift, preparing for multiple market scenarios may greatly help the investor if changes start to occur.  

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