What is the Mass Index Reading Revealing For Regency Ceramics Limited (REGENCERAM.NS)?

Regency Ceramics Limited (REGENCERAM.NS)’s Mass Index reading has moved above the key level of 27, indicating that the shares might be ready to make a significant move.  The Mass Index is a measure of volatility that can be extremely helpful in identifying reversal patterns. While it does not predict the direction of a reversal, the indicator has proven to be quite accurate in analyzing trading ranges to determine when a reversal is likely to occur, particularly over long periods of time. As a result, the indicator should be an instrumental part of any traders toolbox.  The Mass Index indicator was invented by Donald Dorsey and uses the difference between the high and low in a given interval to spot potential price reversals. The main assumption is that prices tend to reverse when ranges widen beyond historical averages. Since this difference is constantly changing (ranges are always widening and narrowing), traders can use the Mass Index to generate trade signals, which occur when the index line (typically 25 periods) moves above 27 and then drops below 26.5.

Investing in the stock market will always involve some level of risk. Investors often have to determine how much they are willing to risk, and try to project what the potential reward could be. Taking on too much risk may put the average investor out of their comfort zone. Finding that sweet spot for risk appetite may help investors get on the correct path to conquering the markets. As companies continue to report quarterly earnings, investors will be watching which companies post larger than expected surprises. Analysts will also be watching the numbers closely in order to make sense of the results and update estimates accordingly.

Here we will take a look at the ADX reading on shares of Regency Ceramics Limited (REGENCERAM.NS). Many chart analysts believe that an ADX reading over 25 would suggest a strong trend. A reading under 20 would suggest no trend, and a reading from 20-25 would suggest that there is no clear trend signal. The ADX was created by J. Welles Wilder to help determine how strong a trend is. In general, a rising ADX line means that an existing trend is gaining strength. The opposite would be the case for a falling ADX line.

At the time of writing, the 14-day ADX is standing at 42.82. Many chart analysts believe that an ADX reading above twenty five would suggest a strong trend.
CCI Watch

Looking further at additional technical indicators we can see that the 14-day Commodity Channel Index (CCI) for Regency Ceramics Limited (REGENCERAM.NS) is sitting at -121.38. CCI is an indicator used in technical analysis that was designed by Donald Lambert. A CCI reading closer to +100 may indicate more buying (possibly overbought) and a reading closer to -100 may indicate more selling (possibly oversold).

Moving Averages – Price Reversal Indicators

Shares of Regency Ceramics Limited (REGENCERAM.NS) have a 7-day moving average of 3.84. Taking a look at the relative strength indictor, we note that the 14-day RSI is currently at 32.15, the 7-day stands at 13.77, and the 3-day is sitting at 0.66.

RSI Review

Taking a glance at the relative strength indictor, we note that the 14-day RSI is currently at 32.15, the 7-day stands at 13.77, and the 3-day is sitting at 0.66. 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.

RSI Key Metrics

Below 30 = Oversold Range
Above 70 = Overbought Range

Investors might be looking to rebuild the portfolio as we move into the second half of the year. New investors can be tempted to try to maximize returns by owning one specific sector or be exposed to a fairly large single investment. By diversifying the portfolio, investors might be able to protect themselves from a sudden move against the position. Finding the correct portfolio balance is how many investors choose to approach the markets. This may take some time to master, and there may be some bumps along the way. Investors managing their own money may want to make sure that they know exactly what stocks are in the portfolio at all times. Keeping tabs on portfolio performance can also be a good way to make sure that it is weighted properly.