Shares of ETFS Commodity Securities Ltd (CATL.L) are moving on volatility today 0.71% or $0.05 from the open. The LSE listed company saw a recent bid of $7.08 and 3272 shares have traded hands in the session.
Making the grade in the equity market may not come easily. There is constantly news and information swirling about the next big stock that is ready to take off. Doing a deep-dive into the fundamentals of a specific company may help uncover some data that may help sway the decision whether to jump in or stay out. Some investors may choose to take a contrarian approach when selecting stocks. A contrarian investing strategy may involve buying when everybody is selling, or vice-versa. Contrarians may take the mindset that markets have the ability to overreact to good news or bad news. Going against the grain may not be the easiest strategy to adapt for the novice. Investors may need to fine tune their skills in order to go generally against the crowd. There may come a time when everyone may be selling out of a stock for no real apparent reason. Taking a closer look at stocks like this may reveal some information that may help put the mind at ease.
Deep diving into the technical levels for ETFS Commodity Securities Ltd (CATL.L), we note that the equity currently has a 14-day Commodity Channel Index (CCI) of -213.04. Active investors may choose to use this technical indicator as a stock evaluation tool. 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.
ETFS Commodity Securities Ltd’s Williams Percent Range or 14 day Williams %R currently sits at -91.14. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would point to an overbought situation. A reading from -80 to -100 would signal an oversold situation. The Williams %R was developed by Larry Williams. This is a momentum indicator that is the inverse of the Fast Stochastic Oscillator.
Currently, the 14-day ADX for ETFS Commodity Securities Ltd (CATL.L) is sitting at 28.25. 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.
The RSI, or Relative Strength Index, is a widely used technical momentum indicator that compares price movement over time. The RSI was created by J. Welles Wilder who was striving to measure whether or not a stock was overbought or oversold. The RSI may be useful for spotting abnormal price activity and volatility. The RSI oscillates on a scale from 0 to 100. The normal reading of a stock will fall in the range of 30 to 70. A reading over 70 would indicate that the stock is overbought, and possibly overvalued. A reading under 30 may indicate that the stock is oversold, and possibly undervalued. After a recent check, the 14-day RSIfor ETFS Commodity Securities Ltd (CATL.L) is currently at 44.38, the 7-day stands at 32.08, and the 3-day is sitting at 12.95.
Traders may be looking to capitalize on market trends as we move into the second part of the calendar year. Closely following the technicals might help make sense of current market conditions. Investors may choose to follow many different technical signals, or they may have picked a few popular ones to dedicate themselves to. Whatever the strategy, staying in tune with fundamentals and meaningful economic data may also prove to be highly beneficial. Coming at the equity market from multiple angles may help supply the investor with alternate perspectives that could play a vital role in the next couple of quarters.