April 16, 2019 at 2:53 am

iShares EURO STOXX Select Dividend 30 UCITS ETF (DE) (EXSG.DE): Tracking the Technicals

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Tracking the indicators for iShares EURO STOXX Select Dividend 30 UCITS ETF (DE) (EXSG.DE), we have noted that the twenty one day Wilder Moving Average is currently above the fifty day Simple Moving Average. Traders watching this line may be looking for a possible strong near-term trend forming.

Investors often closely follow fundamental and technical data. Even with all the evidence, it can be tough to determine if the economy and the markets are preparing for a whole new breakout run. With the recent trend resulting in a series of new all-time record highs, investors will have to put the pieces together to try and gauge how long the second longest bull market in history will continue. Some professionals are still wondering if the next recession is looming, and if a bear market is right around the corner. Investors commonly strive to locate the highest probability of success. The next goal may be to capitalize on what could become the most interesting part of the record bull market. Investors will most likely be concentrating on what has proven to work in the past, which may offer a better idea as to how successful the strategies will be heading into the second half of the year and beyond. 

Investors may use multiple technical indicators to help spot trends and buy/sell signals. Presently, iShares EURO STOXX Select Dividend 30 UCITS ETF (DE) (EXSG.DE) has a 14-day Commodity Channel Index (CCI) of 99.73. 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.

Checking in on moving averages, the 200-day is at 18.80, the 50-day is 19.04, and the 7-day is sitting at 19.86. Moving averages may be used by investors and traders to shed some light on trading patterns for a specific stock. Moving averages can be used to help smooth information in order to provide a clearer picture of what is going on with the stock. Technical stock analysts may use a combination of different time periods in order to figure out the history of the equity and where it may be headed in the future. MA’s can be calculated for any time period, but two very popular time frames are the 50-day and 200-day moving averages.

Traders may be narrowing in on the ATR or Average True Range indicator when reviewing technicals. At the time of writing, iShares EURO STOXX Select Dividend 30 UCITS ETF (DE) (EXSG.DE) has a 14-day ATR of 0.17. The average true range indicator was created by J. Welles Wilder in order to measure volatility. The ATR may assist traders with figuring out the strength of a breakout or reversal in price. It is important to note that the ATR was not designed to determine price direction or to predict future prices.

Tracking other technical indicators, the 14-day RSI is presently standing at 70.91, the 7-day sits at 76.33, and the 3-day is resting at 84.68 for iShares EURO STOXX Select Dividend 30 UCITS ETF (DE) (EXSG.DE). The Relative Strength Index (RSI) is a highly popular technical indicator. The RSI is computed base on the speed and direction of a stock’s price movement. The RSI is considered to be an internal strength indicator, not to be confused with relative strength which is compared to other stocks and indices. The RSI value will always move between 0 and 100. One of the most popular time frames using RSI is the 14-day.

Let’s take a further look at the Average Directional Index or ADX. The ADX measures the strength or weakness of a particular trend. Investors and traders may be looking to figure out if a stock is trending before employing a specific trading strategy. The ADX is typically used along with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) which point to the direction of the trend. The 14-day ADX for iShares EURO STOXX Select Dividend 30 UCITS ETF (DE) (EXSG.DE) is currently at 33.53. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would signify a very strong trend, and a value of 75-100 would point to an extremely strong trend.

Investors often struggle with keeping their emotions in check when approaching the stock market. New investors can have a tendency to sell off winners too quick as well as hold onto losers for way too long. Some will argue that it is never a bad thing to take profits when they are on the table, but this can leave the investor with a large amount of regret if the stock continues to surge after selling. On the other end, investors may hold onto losers for way too long hoping for a bounce back. Holding out for better days can lead to even more exaggerated losses that can leave the investor with an even bigger feeling of regret. Battling to keep emotions separated from important investing decisions can be a big plus for investors over the long haul. Of course, this idea is easier to preach and much harder to follow.