Ingles Markets Inc (IMKTA) 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.
Investors who have stayed on the sidelines may be considering if the markets will continue to rally higher. Staying vigilant and watching for signs of the next bear may prove to be a crucial element for helping to guide certain portfolio moves. Keeping an eye on historical corrections as well as sentiment and technicals, may help provide the proper insight needed. Investors may be mindful of any meaningful pullback or correction, and they may have a certain percentage in mind for when things seem to be getting out of hand. Cautious optimism may prove to be a profit saver when the bearish winds start to blow. Investors may need to figure out a plan for when to take some profit off the table. Conducting thorough fundamental research on stocks even after they have broken out may help the investor understand the reason behind the move, and whether it is likely to continue or if it is just a temporary spike.
Active traders have a wide variety of technical indicators at their disposal for completing technical stock analysis. Here we will take a look at a few more. Presently, the 14-day ATR for Ingles Markets Inc (IMKTA) is spotted at 0.95. First developed by J. Welles Wilder, the ATR may assist traders in determining if there is heightened interest in a trend, or if extreme levels may be signaling a reversal. Simply put, the ATR determines the volatility of a security over a given period of time, or the tendency of the security to move one direction or another.
Investors may be searching for stocks that are undervalued. Scanning the markets during obvious pullbacks may be one strategy, but it may take a more concerted effort to identify these names if the market decides to climb further. Getting caught up in the details from news and various economic reports may leave the average investor dizzy and confused. Focusing on the most important data sets may be helpful when trying to muffle all the noise. Heading into the next quarter, investors will be watching which companies are experiencing positive earnings momentum. Often times, earnings that vastly beat expectations may cause the stock to skyrocket. Filling the portfolio with stocks experiencing positive earnings momentum may be a popular choice. Investors may want to look a little bit deeper into the situation to make sure that the momentum is justified. Some investors may already be adept at figuring this out while others may need to put in a bit more work.
Some investors may find the Williams Percent Range or Williams %R as a helpful technical indicator. Presently, Ingles Markets Inc (IMKTA)’s Williams Percent Range or 14 day Williams %R is resting at -19.62. 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.
Investors may use multiple technical indicators to help spot trends and buy/sell signals. Presently, Ingles Markets Inc (IMKTA) has a 14-day Commodity Channel Index (CCI) of 105.28. The CCI was developed by Donald Lambert. The assumption behind the indicator is that investment instruments move in cycles with highs and lows coming at certain periodic intervals. The original guidelines focused on creating buy/sell signals when the reading moved above +100 or below -100. Traders may also use the reading to identify overbought/oversold conditions.
The Average Directional Index or ADX is a popular technical indicator designed to help measure trend strength. Many traders will use the ADX in combination with other indicators in order to help formulate trading strategies. Presently, the 14-day ADX for Ingles Markets Inc (IMKTA) is 22.08. In general, 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 alone was designed to measure trend strength. When combined with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI), it can help decipher the trend direction as well.
Taking a peek at some Moving Averages, the 200-day is at 30.00, the 50-day is 31.71, and the 7-day is sitting at 33.40. The moving average is a popular tool among technical stock analysts. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a specific period of time. Moving averages can be very useful for identifying peaks and troughs. They may also be used to help the trader figure out proper support and resistance levels for the stock.
Some investment professionals believe that a great way to find, study, and invest in equities without getting completely overwhelmed, is to have a systematic and research driven approach. Of course, the same approach may not work for everybody. One investor may find one way that works for them, and another investor might find something completely different when it comes to portfolio picking. Trading and investing can carry a major emotional component. Even after careful research, being able to pull the trigger on a trade may still involve squashing the fear that comes with the thought of being wrong. Finding continued success in the stock market may entail keeping the portfolio balanced, but also finding the courage to get in when necessary, or get out when needed. Developing this confidence may take a lot of practice and determination.