Technical Toolbox: Investor Focus on Nagambie Resources Ltd (NAG.AX)
Nagambie Resources Ltd (NAG.AX) has a 14-day Commodity Channel Index (CCI) of -253.78. The CCI was designed to typically remain within the reading of -100 to +100. Traders may use the indicator to spot stock trends or to seek out overbought/oversold conditions. A CCI reading over +100 would suggest that the stock is overbought and possibly ready for a correction. On the flip side, a reading of -100 would imply that the stock is oversold and possibly set for a rally.
A popular 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. They may also be used to assist the trader figure out proper support and resistance levels for the stock. Currently, Nagambie Resources Ltd (NAG.AX) has a 200-day MA of 0.11, and a 50-day of 0.07. Presently, the stock has a 14-day RSI of 42.57, the 7-day is sitting at 34.49, and the 3-day is resting at 17.92. The Relative Strength Index (RSI) is one of multiple popular technical indicators created by J. Welles Wilder. Wilder introduced RSI in his book “New Concepts in Technical Trading Systems” which was published in 1978. RSI measures the magnitude and velocity of directional price movements. The data is represented graphically by fluctuating between a value of 0 and 100. The indicator is computed by using the average losses and gains of a stock over a certain time period. RSI can be used to help spot overbought or oversold conditions. An RSI reading over 70 would be considered overbought, and a reading under 30 would indicate oversold conditions. A level of 50 would indicate neutral market momentum.
Nagambie Resources Ltd (NAG.AX)’s Williams Percent Range or 14 day Williams %R presently is at -75. In general, if the reading goes above -20, the stock may be considered to be overbought. Alternately, if the indicator goes under -80, this may show the stock as being oversold. We can also take a look at the Average Directional Index or ADX of the stock. For traders looking to capitalize on trends, the ADX may be an essential technical tool. The ADX is used to measure trend strength. ADX calculations are made based on the moving average price range expansion over a specified amount of time. ADX is charted as a line with values ranging from 0 to 100. The indicator is non-directional meaning that it gauges trend strength whether the stock price is trending higher or lower. The 14-day ADX for Nagambie Resources Ltd (NAG.AX) presently sits at 29.42. 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.
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So am I reading this correctly as NAG -253.78 means it is "over sold and set for a rally"?
NAG Price at posting:
6.0¢ Sentiment: Buy Disclosure: Held
