Sunday, 17 December 2017
Reviews

Stock Review: Looking at the Technicals for VA Tech Wabag Limited (WABAG.NS)


After a recent scan, we have seen that the KAMA has been trending lower over the previous five trading periods for VA Tech Wabag Limited (WABAG.NS). Traders keeping an eye on the signal might be watching for a possible negative shift in near-term momentum.

At the time of writing, VA Tech Wabag Limited (WABAG.NS) has a 14-day Commodity Channel Index (CCI) of -92.59. Developed by Donald Lambert, the CCI is a versatile tool that may be used to help spot an emerging trend or provide warning of extreme conditions. CCI generally measures the current price relative to the average price level over a specific time period. CCI is relatively high when prices are much higher than average, and relatively low when prices are much lower than the average.

Another technical indicator that may be a powerful resource for determining 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 VA Tech Wabag Limited (WABAG.NS) is noted at 33.97. 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.

Tracking other technical indicators, the 14-day RSI is presently standing at 37.07, the 7-day sits at 35.11, and the 3-day is resting at 35.18. 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”.

For further review, we can take a look at another popular technical indicator. In terms of moving averages, the 200-day is currently at 608.62, the 50-day is 613.30, and the 7-day is resting at 584.89. Moving averages are a popular trading tool among investors. Moving averages can be used to help filter out the day to day noise created by other factors. MA’s may be used to identify uptrends or downtrends, and they can be a prominent indicator for detecting a shift in momentum for a particular stock. Many traders will use moving averages for different periods of time in conjunction with other indicators to help gauge future stock price action.

Some investors may find the Williams Percent Range or Williams %R as a helpful technical indicator. Presently, VA Tech Wabag Limited (WABAG.NS)’s Williams Percent Range or 14 day Williams %R is resting at -69.38. Values can range from 0 to -100. A reading between -80 to -100 may be typically viewed as strong oversold territory. A value between 0 to -20 would represent a strong overbought condition. As a momentum indicator, the Williams R% may be used with other technicals to help define a specific trend.




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