April 19, 2019 at 2:38 am

Market Tracker: Following Shares of Caesarstone Sdot-Yam (CSTE)

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Watching the signals for Caesarstone Sdot-Yam (CSTE), we have noted that the Chaikin Oscillator is below zero. Traders may be watching for possible bearish momentum on the stock.

Investors often hear the saying “buy low, sell high”. This may seem highly obvious to anybody looking to get into the stock market. Even though investors typically know they should do this, novices tend to do just the opposite, buy high and sell low. Often times, amateur investors will get carried away when a stock is trending higher. They may attempt to get in on the stock after a big move with hopes of the stock going higher and an overall thought that relates to the fear of missing out. Often times, investors will find themselves in a precarious situation when this occurs. They might have taken a chance on a stock that maybe was too good to be true. Investors may regret buying after the big move when the price has far exceeded the underlying value. Closely watching the fundamentals may help investors avoid getting into sticky situations such as buying too high.

The Average Directional Index or ADX is technical analysis indicator used to discern if a market is trending or not trending. The ADX alone measures trend strength but not direction. Using the ADX with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) may help determine the direction of the trend as well as the overall momentum. Many traders will use the ADX alongside other indicators in order to help spot proper trading entry/exit points. Currently, the 14-day ADX for Caesarstone Sdot-Yam (CSTE) is 21.89. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would signal a very strong trend, and a value of 75-100 would indicate an extremely strong trend.

When applying indicators for technical analysis, traders and investors might want to look at the ATR or Average True Range. The current 14-day ATR for Caesarstone Sdot-Yam (CSTE) is currently sitting at 0.41. The ATR basically measures the volatility of a stock on a day-to-day basis. The average true range is typically based on 14 periods and may be calculated daily, weekly, monthly, or intraday. The ATR is not considered a directional indicator, but it may reflect the strength of a particular move.

When performing stock analysis, investors and traders may opt to view technical levels. Caesarstone Sdot-Yam (CSTE) presently has a 14-day Commodity Channel Index (CCI) of 9.44. Investors and traders may use this indicator to help spot price reversals, price extremes, and the strength of a trend. Many investors will use the CCI in conjunction with other indicators when evaluating a trade. The CCI may be used to spot if a stock is entering overbought (+100) and oversold (-100) territory.

Shares of Caesarstone Sdot-Yam (CSTE) have a 200-day moving average of 16.21. The 50-day is 16.04, and the 7-day is sitting at 15.20. Using a bigger time frame to assess the moving average such as the 200-day, may help block out the noise and chaos that is often caused by daily price fluctuations. In some cases, MA’s may be used as strong reference points for spotting support and resistance levels.

Checking in on some other technical levels, the 14-day RSI is currently at 48.48, the 7-day stands at 55.26, and the 3-day is sitting at 76.51. Many investors look to the Relative Strength Index (RSI) reading of a particular stock to help identify overbought/oversold conditions. The RSI was developed by J. Welles Wilder in the late 1970’s. Wilder laid out the foundation for future technical analysts to further investigate the RSI and its relationship to underlying price movements. Since its inception, RSI has remained very popular with traders and investors. Other technical analysts have built upon the work of Wilder. The 14-day RSI is still a widely popular choice among technical stock analysts.

Investors may be searching high and low for the next breakout winner in the stock market. As companies continue to release quarterly earnings reports, investors will be looking for stocks that have the potential to move to the upside in the coming months. Tracking earnings can be a good way for investors to see how the company is stacking up to analyst estimates. Some investors prefer to track sell-side estimates very closely. Others prefer to do their own research and make their own best guesses on what the actual numbers will be. A solid earnings beat may help ease investor worries if the stock has been underperforming recently. On the flip side, a bad earnings miss may cause investors to take a much closer look at what the future prospects look like for the company.