Shares of Dorel Industries Inc. (DII-B.TO) are being monitored closely as they have moved below the Elder Force zero line. Elder’s Force Index (or EFI) uses volume and price change from previous close to determine the momentum behind a price move in a given direction. An increasing Force Index is indicative of strong interest in the direction of the price move while a decreasing Force Index suggests that price is moving counter to the major trend. It is calculated by exponentially smoothing the product of volume and the difference in price from previous close to current close. Values above 0 indicate a current buying trend, while values below 0 indicate a selling trend. The Force Index uses both the change in closing prices and volume in its calculation.
Investors may be taking a closer look at holdings and trying to decide which way the stock market will lean in the second half of the year. Maybe there are some surprising winners, and the decision needs to be made to either sell for a profit or hold on for further potential gains. Maybe there are some losers that are being held onto with the hope of a rebound. Sometimes investors may get too emotionally attached to certain stocks. Keeping unbiased focus on the market may help provide the portfolio with an added boost. Nobody knows for sure what will transpire over the next few quarters. As earnings reports flow in, investors will be monitoring which companies provide the biggest surprises.
Traders have been closely following shares of Dorel Industries Inc. (DII-B.TO) recently. Focusing on moving averages, the 50-day is 16.20, the 200-day is at 20.46, and the 7-day is 12.70. Using the moving average for technical stock analysis is still quite popular among traders and investors. The moving average can be used as a reference point to help spot buying and selling opportunities. Using a longer term moving average such as the 200-day may help squash the noise and chaos that is sometimes created by daily price fluctuations. In some cases, MA’s may be used as strong reference points for figuring out support and resistance levels.
Dorel Industries Inc. (DII-B.TO)’s Williams Percent Range or 14 day Williams %R currently sits at -88.38. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would point to an overbought situation. A reading from -80 to -100 would signal an oversold situation. The Williams %R was developed by Larry Williams. This is a momentum indicator that is the inverse of the Fast Stochastic Oscillator.
Dorel Industries Inc. (DII-B.TO) currently has a 14-day Commodity Channel Index (CCI) of -83.70. Active investors may choose to use this technical indicator as a stock evaluation tool. Used as a coincident indicator, the CCI reading above +100 would reflect strong price action which may signal an uptrend. On the flip side, a reading below -100 may signal a downtrend reflecting weak price action. Using the CCI as a leading indicator, technical analysts may use a +100 reading as an overbought signal and a -100 reading as an oversold indicator, suggesting a trend reversal.
Investors will most likely be looking ahead to the next round of company earnings reports. As the reports come in, all eyes will be on the companies that post wide margin earnings beats or misses. Many investors will be closely tracking which way analyst estimates are being adjusted right before earnings. This may provide some insight on how good or bad the numbers for the quarter are likely to be. Investors might want to take a look at their holdings after the earnings reports to make sure that nothing extremely odd is occurring after crunching the numbers.
Currently, the 14-day ADX for Dorel Industries Inc. (DII-B.TO) is sitting at 28.64. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would identify a very strong trend, and a value of 75-100 would lead to an extremely strong trend. ADX is used to gauge trend strength but not trend direction. Traders often add the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of a trend.
The RSI, or Relative Strength Index, is a widely used technical momentum indicator that compares price movement over time. The RSI was created by J. Welles Wilder who was striving to measure whether or not a stock was overbought or oversold. The RSI may be useful for spotting abnormal price activity and volatility. The RSI oscillates on a scale from 0 to 100. The normal reading of a stock will fall in the range of 30 to 70. A reading over 70 would indicate that the stock is overbought, and possibly overvalued. A reading under 30 may indicate that the stock is oversold, and possibly undervalued. After a recent check, the 14-day RSI is currently at 25.77, the 7-day stands at 18.82, and the 3-day is sitting at 17.70.
Some dedicated market watchers will preach the old adage, nothing ventured nothing gained. Some may adhere to the slow and steady mindset. The correct play for one investor may not be the same for another. Some may choose to be fully invested while others may keep some cash on the sidelines. Active stock market investors may have to find that perfect balance between being too risky or playing it too safe. If the market keeps charging higher in the second half of the year, investors may have to decide whether to take profits, or let it ride.