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After a Move of -1.98%, What’s Next For Bankfinancial Corpor (BFIN)?

Shares of Bankfinancial Corpor (BFIN) have been trending lower over the past five bars, revealing bearish momentum for the shares, as they ran -1.98% for the week.  Looking further out we note that the shares have moved 0.72% over the past 4-weeks, -5.20% over the past half year and -7.15% over the past full year.

Investors might be preparing to do a portfolio evaluation as we move towards the close of the year. There may be plenty of big winners from the first half of the year, but there may also be some underperformers that need to be reviewed. Making sure that the portfolio stays in balance can help prepare the investor for success over the next few quarters. With the stock market still riding high, investors may be wondering how to play the market into the near future. If market momentum starts to shift, investors may need to be ready to make some tougher decisions. Being prepared for any market situation can help the investor cope with rough waters when the time comes.      

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. The 14-day RSI is currently sitting at 46.43, the 7-day is at 34.48, and the 3-day is spotted at 10.99 for Bankfinancial Corpor (BFIN).

Investors may be tracking certain levels on shares of Bankfinancial Corpor (BFIN). The current 50-day Moving Average is 15.23, the 200-day Moving Average is 15.79, and the 7-day is noted at 15.57. Moving averages can help spot trends and price reversals. They may also be used to help find support or resistance levels. Moving averages are considered to be lagging indicators meaning that they confirm trends. A certain stock may be considered to be on an uptrend if trading above a moving average and the average is sloping upward. On the other side, a stock may be considered to be in a downtrend if trading below the moving average and sloping downward.

Traders may be relying in part on technical stock analysis. Bankfinancial Corpor (BFIN) currently has a 14-day Commodity Channel Index (CCI) of -164.74. Despite the name, CCI can be used on other investment tools such as stocks. The CCI was designed to typically stay within the reading of -100 to +100. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction. On the other hand, a reading of -100 would imply that the stock is oversold and possibly set for a rally.

At the time of writing, the 14-day ADX for Bankfinancial Corpor (BFIN) is 13.50. Many technical chart analysts believe that an ADX value over 25 would suggest a strong trend. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal. The ADX is typically plotted along with two other directional movement indicator lines, the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI). Some analysts believe that the ADX is one of the best trend strength indicators available.

Investing in the stock market can sometimes draw intense emotion from individual investors. When the market slips into a chaotic state, some investors may let their emotions get the best of them which can lead to impulsive decisions. On the other side of the coin, market chaos may cause certain investors to freeze in a panic. This may mean that the investor becomes shaken to the point that they are unable to make any decisions let alone an educated one. Discipline is a quality shared by many successful traders and investors. Staying committed to the plan, whether short-term or long-term, can help investors make it through those times of extreme market uncertainty.