Daily

Trend Indicator Watch on This Stock: Softlaw Corporation Ltd (SLC.AX)

After a recent look at shares of Softlaw Corporation Ltd (SLC.AX), we have seen that the Percentage Price Oscillator Histogram level is under zero. Traders following the indicator may be using the reading to identify a possible sell.

Traders are often looking for any little advantage that they can get when attempting to grab profits in the stock market. Traders might be closely watching insider buying and selling as well as what the successful fund managers are doing. Following the smart money can help investors get a grasp on the bigger picture of what is going on with certain equities. There is no shortage of information that the individual trader can get their hands on. Figuring out how to best put that information to work is an important part of any trading plan. With so much data to track, traders may need to decide which information they will use when making the big investing decisions. Pinpointing the next great trade could be just around the corner, but it may take some hard work and enhanced focus.

{csv|m:199|id:590|s:Name}} (SLC.AX) presently has a 14-day Commodity Channel Index (CCI) of 25.09. The CCI was created to typically stay within the reading of -100 to +100. Traders may use the indicator to determine if a stock is trending or to spot overbought/oversold conditions. A CCI reading above the +100 level would suggest that the stock is overbought and possibly primed for a correction. On the other hand, a reading of -100 would indicate that the stock is oversold.

The Williams Percent Range or Williams %R is another technical indicator worth checking out. Softlaw Corporation Ltd (SLC.AX) currently has a 14 day Williams %R of -29.40. The Williams %R fluctuates between 0 and -100 measuring whether a security is overbought or oversold. The Williams %R is similar to the Stochastic Oscillator except it is plotted upside-down. Levels above -20 may indicate the stock may be considered is overbought. If the indicator travels under -80, this may signal that the stock is oversold. Chart analysts may also use the indicator to project possible price reversals and to define trends.

Stock analysis may be used to determine which shares the investor should buy, and at what price they should buy. Many investors will search for stocks that are currently undervalued. Fundamental research may involve scouring the balance sheet to spot a solid company. Many investors will use financial ratios to help determine which shares to purchase. Some of the more popular ratios are return on equity, earnings per share, price to earnings, and dividend yield. Applying the same type of research across the board may help the investor spot stocks that present a good opportunity for future growth.

The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of stock price movements. The RSI was developed by J. Welles Wilder, and it oscillates between 0 and 100. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70. RSI can be used to detect general trends as well as finding divergences and failure swings. The 14-day RSI is presently standing at 50.91, the 7-day is 56.66, and the 3-day is resting at 75.22.

A 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 1.91.

The Average Directional Index or ADX is technical analysis indicator used to discern if a market is trending or not trending. The ADX alone measures trend strength but not direction. Using the ADX with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) may help determine the direction of the trend as well as the overall momentum. Many traders will use the ADX alongside other indicators in order to help spot proper trading entry/exit points. Currently, the 14-day ADX for Softlaw Corporation Ltd (SLC.AX) is 42.64. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would signal a very strong trend, and a value of 75-100 would indicate an extremely strong trend.

Investors will be closely watching which way market momentum will shift as we cruise into the back half of the year. Earnest investors will most likely be pouring over the latest earnings reports trying to spot buying opportunities. Many investors will pay especially close attention to companies that have posted large surprise factors over the past quarter. As the dust settles, investors might be monitoring stock price activity following the earning release in order to set up a plan for trading around the next earnings season.