Figure 1. AGI Price Chart
Price and moving averages:
AGI 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:
AGI has closed below upper band by 38.0%.
Bollinger Bands are 40.1% wider than normal.
The large width of the bands suggest high volatility as compared to AGI's normal range. Therefore, the probability of volatility decreasing and prices entering (or remaining in) a trading range has increased for the near-term. The bands have been in this wide range for 9 bars.The probability of prices consolidating into a less volatile trading range increases the longer the bands remain in this wide range.
Historical Volatility:
50 day Historical Volatility is 34% (desired: greater than 40%).
6/100 day ratio Historical Volatility is 1.16 ( desired: less than 0.50).Trend Direction and Strength:
AGI is moving upward in a weak trend strength.
Support/Resistance Lines:
Support: 4.65-4.45Resistance:5
Figure 2. Other Technical Indicators
RSI:
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 56.56. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 6 periods ago.
Stochastic:
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 40.0000. This is not an overbought or oversold reading. It just triggered the buy signal.
MACD:
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. Currently the MACD is bearish since it is trading below its signal line.The MACD crossed below its signal line 2 periods ago.
sir epgarias - medyo mahirap intindihin for now yun bollinger bands. di ko gets ang significance. SMA/EMA I understand slightly. stochastic, hmmm not sure if I understand correctly.
ReplyDeletei'll ry to learn more on these in the coming days.
Bollinger bands are actually very useful.
ReplyDeleteSome of its uses are:
1. Buy/Sell indicator.
2. To determine how volatile a particular stock.
3. Indicator for a possible breakouts.
if the pattern from Aug. is what you referred to as the c&h, then this could be a possible rounding bottom from another perspective. Rounding bottoms are always mistakenly recognized as cup and handles. But one should learn that cup and handles are powerful continuation patterns of which its prior trend should be upward leading to the pattern.
ReplyDeleteBut then, rounding bottoms are best traded if you can see it on a different perspective like complex h&s bottom (multiple head and shoulders).
Your chart above is a falling wedge pattern and fortunately has not fallen back inside. a good add to my watchlist to lead out a turn in this healthy correction. thanks for the heads up!