The Money Flow Indicator for Suncoke Energy Partners LP (SXCP) has touched above 60 and has found a place on investor’s radar as it potentially nears the key 70 mark. The MFI indicator is an oscillator which ranges between fixed values of 0 and 100 and as with most oscillators divergences form a major part of trading with the MFI indicator. Traders look for divergence between the indicator and the price action. If the price trends higher and the MFI trends lower (or vice versa), a reversal may be imminent. Market tops tend to occur when the MFI is above 70 or 80. Market bottoms tend to occur when the MFI is below 20.
Investors should however be wary of trading these levels blindly. As the warning goes, an overbought market can remain overbought for an extended period. Strong trends can present a problem for these classic overbought and oversold levels. The MFI can become overbought, and prices can simply continue higher when the uptrend is strong. Conversely, the MFI can become oversold, and prices can simply continue lower when the downtrend persists. Like the RSI, this indicator is best used in conjunction with another indicator as confirmation.
Investing in the stock market has traditionally offered higher returns than other types of investments. With the higher potential for returns, there is also a higher risk factor. Investors typically need to address their own personal risk situation before jumping into the market. Figuring out risk appetite can help when choosing which types of stocks to buy. Some investors will decide that they want to take a chance on certain stocks that have the potential to outperform in the future. Other investors may opt to play it safe and build a portfolio with low risk, staple stocks.
Taking a further look into the shares from a technical standpoint, Suncoke Energy Partners LP (SXCP) presently has a 14-day Commodity Channel Index (CCI) of -105.39. 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.
The 14-day ADX for Suncoke Energy Partners LP (SXCP) is currently sitting at 20.40. 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. The ADX is a technical indicator developed by J. Welles Wilder used to determine the strength of a trend. The ADX is often used along with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of the trend.
Moving average indicators are used widely for stock analysis. Many traders will use a combination of moving averages with different time frames to help review stock trend direction. One of the more popular combinations is to use the 50-day and 200-day moving averages. Investors may use the 200-day MA to help smooth out the data a get a clearer long-term picture. They may look to the 50-day or 20-day to get a better grasp of what is going on with the stock in the near-term. Narrowing in on Moving Averages, the 200-day for Suncoke Energy Partners LP (SXCP) is at 13.54, the 50-day is 13.55, and the 7-day is resting at 12.93. The RSI is computed based 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. The 14-day RSI is presently standing at 40.99, the 7-day sits at 35.96, and the 3-day is resting at 19.71.
Investors may be watching other technical indicators such as the Williams Percent Range or Williams %R. The Williams %R is a momentum indicator that helps measure oversold and overbought levels. This indicator compares the closing price of a stock in relation to the highs and lows over a certain time period. A common look back period is 14 days. Suncoke Energy Partners LP (SXCP)’s Williams %R presently stands at -83.33. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would indicate an overbought situation. A reading from -80 to -100 would indicate an oversold situation.
Investors who are new to picking stocks may find themselves tempted to buy shares that have been recently rising the most. Although the traditional advice is to buy low and sell high, novice investors often do just the opposite. Buying a particular stock just because it has been rising recently may end up leaving the investor shaking their head down the road. Expecting that a stock will continue to ride the wave higher can lead to disappointment when momentum suddenly shifts. Studying the fundamentals of a certain company can help the investor gauge if the stock is a worthy buy at current levels.