Date: Dec 28, 2018
Watching the signals on shares of Australian Vanadium Ltd (AVLO.AX), we note that the PPO is currently below the signal line. Technical traders might be watching for the stock to display signs of a bearish move.
Creating a diversified stock portfolio is one way that investors may combat the unknown. Appropriate levels of risk that include different market scenarios might vary from one individual investor to the next. Investors may need to careful that they do not become too reliant on one big position. When that position is producing returns, it can be easy to assume that the holding will continue to produce positive results. If the portfolio is weighted too heavily on one or two big positions, an overall market downturn may send the investor reeling. Finding that proper portfolio balance is typically what dedicated investors strive for.
At the time of writing, the 14-day Commodity Channel Index (CCI) is -153.18. Developed by Donald Lambert, the CCI is a versatile tool that may be used to help spot an emerging trend or provide warning of extreme conditions. CCI generally measures the current price relative to the average price level over a specific time period. CCI is relatively high when prices are much higher than average, and relatively low when prices are much lower than the average.
For further review, we can take a look at another popular technical indicator. In terms of moving averages, the 200-day is currently at 0.02, the 50-day is 0.02, and the 7-day is resting at 0.01. Moving averages are a popular trading tool among investors. Moving averages can be used to help filter out the day to day noise created by other factors. MA’s may be used to identify uptrends or downtrends, and they can be a prominent indicator for detecting a shift in momentum for a particular stock. Many traders will use moving averages for different periods of time in conjunction with other indicators to help gauge future stock price action.
Taking a quick look at technical levels and trend lines, we see that the stock has a 14-day ADX of 35.70. For traders looking to capitalize on trends, the ADX may be an essential technical tool. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would indicate a very strong trend, and a value of 75-100 would signify an extremely strong trend.
