Figure 1. ISM Price Chart
Price and moving averages:
ISM has closed below its Short time moving average.
Short time moving average is currently above mid-time, and above long time moving averages.
The relationship between price and moving averages is: neutral in short-term, and bullish in mid-long term.
Bollinger Bands:
ISM has closed above bottom band by 39.1%.
Bollinger Bands are 11.6% narrower than normal.
The current width of the bands (alone) does not suggest anything conclusive about the future volatility or movement of prices.
ISM has closed below its Short time moving average.
Short time moving average is currently above mid-time, and above long time moving averages.
The relationship between price and moving averages is: neutral in short-term, and bullish in mid-long term.
Bollinger Bands:
ISM has closed above bottom band by 39.1%.
Bollinger Bands are 11.6% narrower than normal.
The current width of the bands (alone) does not suggest anything conclusive about the future volatility or movement of prices.
Trend Direction:
ISM is moving sideways to up. It has a fairly strong trend strength reading of 32.37. Momentum is starting to shift to the upward direction as indicated by the MACD indicator in Figure 2 below.
Figure 2. Other Techical Indicators
RSI Indicator:
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 54.51. This is not a topping or bottoming area. It also indicates that ISM is bullish for reading is above 50. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 16 period(s) ago.
Stochastic Indicator:
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 27.78. This is not an overbought or oversold reading. The last signal was a buy 0 period(s) ago.
MACD Indicator:
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 5 period signal line. The last signal was a sell 7 period(s) ago. MACD also indicates that ISM is still bullish for it has a reading above zero.
Figure 3. Support & Resistance Lines
S/R Lines:
Support Line: 0.0600
Resistance Line: 0.0675
Fibonacci Lines:
Support Line: 0.0625
Resistance Line: 0.0675
Recommendation:
Based from the stochastic indicator this is a buy already, particularly on the area 0.0600 to 0.0625.
if you mean that the stochs was this low to consider it a buy, how would we know it wouldn't go sideways for a month++ like in june and sept?
ReplyDeleteThere is always that possibility that ISM will move sideways. The trick here is to monitor its trend strength, the direction of its momentum, and the overall trend direction. You can also use the bollinger bands to tell if how volatile ISM. Based from this you can already tell if it is already sleeping just like those months of June and September.
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