After a recent indicator scan, we have noted that Span A is currently higher than Span B for shares of ETFS Commodity Securities Limited (SCOP.L). Traders may be paying close attention as this signal may indicate a possible bullish move.
ETFS Commodity Securities Limited (SCOP.L) presently has a 14-day Commodity Channel Index (CCI) of -104.88. 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 another technical indicator, the 14-day RSI is currently sitting at 41.26.
Many traders will use a combination of moving averages with different time frames to help review stock trend direction. One of the more popular combinations is to use the 50-day and 200-day moving averages. Investors may use the 200-day MA to help 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. Presently, the 200-day moving average is at 30.31 and the 50-day is 27.37.
Taking a look at other technical levels, the 3-day RSI stands at 6.83, the 7-day sits at 28.91 and the 14-day (most common) is at 41.26. 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”.
The Williams %R is designed to provide a general sense of when the equity might have reached an extreme and be primed for a reversal. As a general observance, the more overbought or oversold the reading displays, the more likely a reversal may take place. The 14 day Williams %R for ETFS Commodity Securities Limited (SCOP.L) is noted at -100.00. Many consider the equity oversold if the reading is below -80 and overbought if the indicator is between 0 and -20.
At the time of writing, the 14-day ADX for ETFS Commodity Securities Limited (SCOP.L) is standing at 15.29. Many chart analysts believe that an ADX reading over 25 would suggest a strong trend. A reading under 20 would suggest no trend, and a reading from 20-25 would suggest that there is no clear trend signal. The Average Directional Index or ADX. The ADX was created by J. Welles Wilder to help determine how strong a trend is. In general, a rising ADX line means that an existing trend is gaining strength. The opposite would be the case for a falling ADX line.