US 12 Month Natural Gas (UNL) shares have seen the Balance of Power trend lower over the past few sessions, indicating potential price moves are ahead.
The Balance of Power (BOP), indicator was developed by Igor Livshin and it was introduced in the August 2001 issue of Stocks and Commodities Magazine. Balance of Power (BOP) measures the strength of the bulls versus the bears by assessing the ability of each to push price to extreme levels. The BOP indicator represents the strength of the buyers (bulls) vs. the sellers (bears), and oscillates between -100 and 100. The calculation of the BOP = (close – open) / (high – low). A directional change of the BOP can be interpreted as a warning signal and will generally be followed by a price change.
Investors may already be plotting the course for the next few quarters. Many investing decisions may need to be made after the next round of company earnings reports are released. Studying the numbers can help the investor see whether or not the stock’s prospects look good in the near term as well as the longer term. It remains to be seen whether optimism in the stock market will continue into the next year. Investors will closely be monitoring the major economic data reports over the next couple of months. While nobody can be sure which way the momentum will shift, preparing for multiple market scenarios may greatly help the investor if changes start to occur.
Tracking other technical indicators, the 14-day RSI is presently standing at 31.27, the 7-day sits at 21.39, and the 3-day is resting at 7.34 for US 12 Month Natural Gas (UNL). The Relative Strength Index (RSI) is an often employed momentum oscillator that is used to measure the speed and change of stock price movements. When charted, the RSI can serve as a visual means to monitor historical and current strength or weakness in a certain market. This measurement is based on closing prices over a specific period of time. As a momentum oscillator, the RSI operates in a set range. This range falls on a scale between 0 and 100. If the RSI is closer to 100, this may indicate a period of stronger momentum. On the flip side, an RSI near 0 may signal weaker momentum. The RSI was originally created by J. Welles Wilder which was introduced in his 1978 book “New Concepts in Technical Trading Systems”.
For further review, we can take a look at another popular technical indicator. In terms of moving averages, the 200-day is currently at 10.17, the 50-day is 10.65, and the 7-day is resting at 10.37. Moving averages are a popular trading tool among investors. Moving averages can be used to help filter out the day to day noise created by other factors. MA’s may be used to identify uptrends or downtrends, and they can be a prominent indicator for detecting a shift in momentum for a particular stock. Many traders will use moving averages for different periods of time in conjunction with other indicators to help gauge future stock price action.
Looking at shares from a technical standpoint, US 12 Month Natural Gas (UNL) presently has a 14-day Commodity Channel Index (CCI) of -194.82. Typically, the CCI oscillates above and below a zero line. Normal oscillations tend to stay in the range of -100 to +100. A CCI reading of +100 may represent overbought conditions, while readings near -100 may indicate oversold territory. Although the CCI indicator was developed for commodities, it has become a popular tool for equity evaluation as well.
We can also do some further technical analysis on the stock. At the time of writing, the 14-day ADX for US 12 Month Natural Gas (UNL) is 23.14. 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.
Interested investors may be watching the Williams Percent Range or Williams %R. Williams %R is a popular technical indicator created by Larry Williams to help identify overbought and oversold situations. Investors will commonly use Williams %R in conjunction with other trend indicators to help spot possible stock turning points. US 12 Month Natural Gas (UNL)’s Williams Percent Range or 14 day Williams %R currently sits at -100.00. In general, if the indicator goes above -20, the stock may be considered overbought. Alternately, if the indicator goes below -80, this may point to the stock being oversold.
Investors are often trying to figure out the best way to analyze the stock market. When it comes to stock research, investors may use fundamental analysis, technical analysis, or a combination of both. Boiling down the two techniques, studying the fundamentals puts the focus on factors that may influence specific stocks, and studying the technicals puts the focus on market behavior analysis. Investors who study the fundamentals are typically trying to understand why stocks and markets move the way they do. Technical analysts are more concerned with spotting trends and trying to measure the characteristics of those trends. Some investors may prefer one method of stock research over another, but many investors may use a combination of both methods to help make sure that all the bases are covered.