Currently, traders are closely monitoring shares of Cairn Homes Plc (CRN.L). Recently, we have spotted Span A below Span B. If this position sticks, traders might be looking for a bearish move lower.
Individual investors may tend to become more bullish at market tops and more bearish at the bottoms. This goes against the buy low sell high mantra that is widely preached in the investing community. The two emotions that come into play here are greed and fear. Investors tend to get greedy when they see stocks flying to new highs. It can be very tempting to get in on a name that has been running hot for a time. On the other side of the coin, investors often get fearful when the market is tanking. The fear of losing becomes prevalent when this occurs, and investors may be tempted to sell like the rest. Although this goes against logic, many investors will still end up buying high and selling low.
When applying indicators for technical analysis, traders and investors might want to look at the ATR or Average True Range. The current 14-day ATR for Cairn Homes Plc (CRN.L) is currently sitting at 0.04. The ATR basically measures the volatility of a stock on a day-to-day basis. The average true range is typically based on 14 periods and may be calculated daily, weekly, monthly, or intraday. The ATR is not considered a directional indicator, but it may reflect the strength of a particular move.
Some investors may find the Williams Percent Range or Williams %R as a helpful technical indicator. Presently, Cairn Homes Plc (CRN.L)’s Williams Percent Range or 14 day Williams %R is resting at -73.68. Values can range from 0 to -100. A reading between -80 to -100 may be typically viewed as strong oversold territory. A value between 0 to -20 would represent a strong overbought condition. As a momentum indicator, the Williams R% may be used with other technicals to help define a specific trend.
Taking a peek at some Moving Averages, the 200-day is at 1.27, the 50-day is 1.18, and the 7-day is sitting at 1.12. The moving average is a popular tool among technical stock analysts. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a specific period of time. Moving averages can be very useful for identifying peaks and troughs. They may also be used to help the trader figure out proper support and resistance levels for the stock.
Traders may be leaning on technical stock analysis to help with investing decisions. Cairn Homes Plc (CRN.L) currently has a 14-day Commodity Channel Index (CCI) of -161.05. 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.
Taking a look at other technical levels, the 3-day RSI stands at 34.90, the 7-day sits at 33.26 and the 14-day (most common) is at 35.86. The Relative Strength Index (RSI) is an often employed momentum oscillator that is used to measure 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 period 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 period 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”.
Even though the stock market can seem erratic and unpredictable, investors may be able to take some steps to help combat the chaos. One thing that investors have the ability to do is create an overall plan and stick to it. This may be one of the single most important factors in achieving success in the stock market. Of course, if something doesn’t seem to be working over an extended period of time, then maybe some action may need to be taken and the plan should be adjusted. Scrapping a plan too early may bring about a lot of unnecessary worry and confusion. Staying disciplined and keeping the proper perspective might help the investor better position themselves on the front lines.
Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.