For the chartist fanatics amongst us the following is an extract from a US?-based stock analyst’s Stock Scanner webpage - compiled today!! – of their daily newsletter: Sherwood Daily Stock & Business News :
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Traders watching the charts on Birimian Ltd (BGS.AX) may be interested in viewing the RSI.
In terms of Relative Strength Index, the 21-day RSI is currently sitting at 43.8.
The RSI, or Relative Strength Index is a popular oscillating indicator among traders and investors.
The RSI operates in a range-bound area with values between 0 and 100.
When the RSI line moves up, the stock may be experiencing strength. The opposite is the case when the RSI line is heading lower.
Different time periods may be used when using the RSI indicator.
The RSI may be more volatile using a shorter period of time.
Many traders keep an eye on the 30 and 70 marks on the RSI scale. A move above 70 is widely considered to show the stock as overbought, and a move below 30 would indicate that the stock may be oversold.
Traders may use these levels to help identify stock price reversals.
Traders may be focusing on other technical indicators for stock assessment.
Presently, BGS has a 14-day Commodity Channel Index (CCI) of -74.38.
The CCI technical indicator can be used to help determine if a stock is overbought or oversold.
A CCI may also be used to help discover divergences that could possibly signal reversal moves.
A CCI closer to +100 may provide an overbought signal, and a CCI near -100 may offer an oversold signal.
Investors may be watching other technical indicators such as the Williams Percent Range or Williams %R. The Williams %R is a momentum indicator that helps measure oversold and overbought levels.
This indicator compares the closing price of a stock in relation to the highs and lows over a certain time period. A common look back period is 14 days.
BGS’s Williams %R presently stands at -87.5.
The Williams %R oscillates in a range from 0 to -100.
A reading between 0 and -20 would indicate an overbought situation.
A reading from -80 to -100 would indicate an oversold situation.
Currently, the 14-day ADX for BGS is sitting at 14.12.
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 a Plus Directional Indicator (+DI)
and a Minus Directional Indicator (-DI)
to identify the direction of a trend.
Another widely used tool among technical stock analysts is the Moving Average.
Moving averages are considered to be lagging indicators that simply take the average price of a stock over a certain period of time.
Moving averages can be very helpful for spotting peaks and troughs.
They may also be used to help the trader figure out reliable support and resistance levels for the stock. Currently, the 200-day MA is sitting at 0.32. End Quote
My opinions on some of the above commentary:
The Williams %R is approaching a base.
b. As I’ve posted before I don’t use a 200-day MA for small-cap mining stocks. I believe that day-period is better suited to industrial stocks, that are not subject to Anns that move their SP significantly in either direction as the more frequent market-sensitive lAnns by stocks such as BGS.For my small-caps I use 10 & 35 day Simple MA’s. The current SP is trending down below both of these and won’t break above them until 29.0c, which shouldn’t now be too far away??
Other comments of mine, based on my chart for BGS : a. For the 2nd time in a month the SP is approaching 26.0c - both a Support level and my Fibonacci 100% retracement line – down – from the 44.5c high on 03 Jan. - thus forming an albeit small “W” pattern. Once the SP changes trend and moves back above my 10 & 35 day MA’s – AND 33c – the SP should then progressively get back to that 44.5c in a relative short period of time.
However the next Ann we get - about the PFS?? – might dramatically make the SP jump substantially above that – in a matter of only a few days. Daily Volume also will probably have to pick up considerably, to move the SP above 40.
b. My Stochastic “Slow-move” indicator is approaching that 26.0c base too, an “oversold” level. GT.
(20min delay)