Blackrock Core Trust (BHK) shares have seen their Schaff Trend Cycle gradually uptrend this week over the past 3 sessions. While this indicates nice price momentum, it also suggests that if the reading moves into overbought territory (STC of 70), then the liklihood of a reversal greatly increases. Investors will be watching very closely over the next few days to see if the trend contiunes or reverses.
The Schaff Trend Cycle (STC) indicator combines the common indicators of MACD & Stochastic. The benefit of the Schaff Trend Cycle is that it is meant to be quicker than the standard macd and stochastic signals. The indicator uses similar methods to a MACD i.e uses exponetial moving averages but applies a cycle factor to them. Then the ‘price’ is smoothed using a mofidied Wilders’ smoothing algorithm. The Schaff Trend Cycle indicator fluctuates between 0 and 100. Readings below 20 are considered oversold while readings above 80 are considered overbought. The STC indicator fluctuates between 0 and 100. Readings below 20 are considered oversold while readings above 80 are considered overbought.
Technical traders may be following indicators to help spot possible entry and exit points. The two main types of indicators are lagging and leading. The leading indicator precedes stock price movements which can be used as a predictor. Lagging indicators may be used as confirmation as they follow price action. Lagging indicators may be highly useful when the market is trending, and leading indicators may be the strongest when the market is moving sideways. Indicators that stay within a certain range are referred to as oscillators. These common indicators are usually monitored for trading signals when the reading gets close to a specific level.
Looking at shares from some additional technical standpoints, Blackrock Core Trust (BHK) presently has a 14-day Commodity Channel Index (CCI) of 121.38. 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.
We can also do some further technical analysis on the stock. At the time of writing, the 14-day ADX for Blackrock Core Trust (BHK) is 35.60. Many technical chart 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. The ADX is typically plotted along with two other directional movement indicator lines, the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI). Some analysts believe that the ADX is one of the best trend strength indicators available.
Interested investors may be watching the Williams Percent Range or Williams %R. Williams %R is a popular technical indicator created by Larry Williams to help identify overbought and oversold situations. Investors will commonly use Williams %R in conjunction with other trend indicators to help spot possible stock turning points. Blackrock Core Trust (BHK)’s Williams Percent Range or 14 day Williams %R currently sits at 0.00. In general, if the indicator goes above -20, the stock may be considered overbought. Alternately, if the indicator goes below -80, this may point to the stock being oversold.
Tracking other technical indicators, the 14-day RSI is presently standing at 77.43, the 7-day sits at 82.78, and the 3-day is resting at 88.61 for Blackrock Core Trust (BHK). 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 13.20, the 50-day is 14.08, and the 7-day is resting at 14.49. 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.
Traders using technical analysis typically believe that all the needed information to trade a specific stock can be spotted in the charts. These traders are generally taking a shorter-term view when studying the market. Technical analysts are usually striving to spot the directional trend of a stock. Trends may be noted as upward, downward, or sideways. Many technicians will rely heavily on support and resistance levels in order to make informed decisions when buying and selling equities. These traders are also closely watching volume levels to help gauge activity. Traders are constantly searching for patterns in the charts. There are many different identifiable patterns that traders can look for. Some of these include head and shoulders, triangles, and double tops/bottoms.