March 26, 2019 at 9:35 am

Dynamic Materials (BOOM) MESA Average Holds Above FAMA

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Shares of Dynamic Materials (BOOM) have seen the Mesa Adaptive Moving Average (MAMA) climb above the Fractional Moving Average or FAMA. The crossing of the MAMA and FAMA lines can be used to generate Buy and Sell signals. When the MAMA crosses above the FAMA a buy signal is given. Alternatively, when the MAMA crosses below the FAMA a sell signal is given.The MESA Adaptive Moving Average is a technical trend-following indicator which adapts to price movement “based on the rate change of phase as measured by the Hilbert Transform Discriminator”. This method of adaptation features a fast and a slow moving average so that the composite moving average swiftly responds to price changes and holds the average value until the next bar’s close. The Averages act as support and resistance areas and the price will tend to react to them. This makes pullbacks to the MAMA and FAMA suitable with-trend entry areas.  As with most technical indicators, the MAMA is best used in conjuction with additional signals.  

Figuring out when to sell a stock can be just as important as deciding what stocks to buy at the outset. Some investors may refuse to sell based on various factors. Investors may have become stubborn, too emotionally attached, or set too high of an expectation for a stock. Holding on to a stock for way too long in order to squeeze every last drop of profit out of a price move may leave the investor desperately searching for answers in the future. Investors may have different checklists for when it is time to sell a stock. Of course this depends largely on the individual and how much is at risk. Often times, investors will make a move to sell when the fundamentals drastically change, the dividend is cut, or a previous set target price has been hit. Getting out of a position at the right time is obviously not easy, but it may become a bit easier with time and research.

Interested traders may also be keeping an eye on 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. Dynamic Materials (BOOM)’s Williams Percent Range or 14 day Williams %R currently sits at -50.74. 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.

Another technical indicator that might serve as a powerful resource for measuring trend strength is the Average Directional Index or ADX. The ADX was introduced by J. Welles Wilder in the late 1970’s and it has stood the test of time. The ADX is typically used in conjunction with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to help spot trend direction as well as trend strength. At the time of writing, the 14-day ADX for Dynamic Materials (BOOM) is noted at 38.80. Many technical 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.

Investors may use various technical indicators to help spot trends and buy/sell signals. Presently, Dynamic Materials (BOOM) has a 14-day Commodity Channel Index (CCI) of 50.82. The CCI was developed by Donald Lambert. The assumption behind the indicator is that investment instruments move in cycles with highs and lows coming at certain periodic intervals. The original guidelines focused on creating buy/sell signals when the reading moved above +100 or below -100. Traders may also use the reading to identify overbought/oversold conditions.

Taking a look at other technical levels, the 3-day RSI stands at 43.95, the 7-day sits at 56.63 and the 14-day (most common) is at 60.99. 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”.

Keeping an eye on Moving Averages, the 50-day is 40.53, the 200-day is at 40.08, and the 7-day is 47.73 for Dynamic Materials (BOOM). Moving averages have the ability to be used as a powerful indicator for technical stock analysis. Following multiple time frames using moving averages can help investors figure out where the stock has been and help determine where it may be possibly going. The simple moving average is a mathematical calculation that takes the average price (mean) for a given amount of time.

The stock investing process may seem intimidating to those just starting out. New investors may have a lot to learn, and they may be wondering where to start. Because there are so many different stock picking strategies, it can be hard to find one specific one to latch on to. Keeping things simple might be a good way to approach the market for beginners. The day to day market happenings can get overwhelming not only for amateurs but professional investors as well. Finding that first little advantage can make all the difference when picking stocks. Many new investors may have the tendency to make too many trades at first without doing the proper research. Easing in to the process may give some much needed perspective for attaining long-term success in the stock market.