Greenross Ltd (GXL.AX) shares are being closely watched by investors as the Twiggs Money Flow indicator has jolted above the zero line. This typically indicates that further upside is ahead for the shares.
Twiggs Money Flow indicator was developed by Colin Twiggs to improve the Chaikin Money Flow (CMF) indicator. The main idea behind the TMF indicator is to evaluate volume (money flow) as bullish or as bearish based on a close price location. Chaikin Money Flow uses CLV (Close Location Value) to do it. Twiggs Money Flow, on the other hand, uses TR (True Range). Another main difference is that CMF uses cumulative volume (sum of volumes over specified period) and the TMF applies Moving average to the volume. When the TMF moves above the zero line, a bullish signal is present and prices can move higher. When the TMF moves below 0, a bullish signal is revealed and prices could be headed downward.
Investors might be looking to find some bargains to add to the portfolio as we move closer towards the end of the year. Maybe some of the earlier portfolio picks don’t look as promising as they did a few months ago. There might also be a few names that have fallen off a cliff and do not look they will be returning to previous levels. Investors may be searching for a few overlooked stocks that the rest of the investing community has passed on for whatever reason. Nobody knows for sure what the next couple of quarters have in store. As earnings season kicks off, investors will be closely following the companies that manage to beat expectations by a wide margin.
Tracking other technical indicators, the 14-day RSI is presently standing at 60.44, the 7-day sits at 62.02, and the 3-day is resting at 71.16. 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 4.66, the 50-day is 5.31, and the 7-day is resting at 5.44. 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.
When undertaking stock analysis, investors and traders may choose to view multiple technical levels. Greenross Ltd (GXL.AX) currently has a 14-day Commodity Channel Index (CCI) of 79.42. Investors and traders may use this indicator to help spot price reversals, price extremes, and the strength of a trend. Many investors will use the CCI in conjunction with other indicators when evaluating a trade. The CCI may be used to spot if a stock is entering overbought (+100) and oversold (-100) territory.
We can also do some further technical analysis on the stock. At the time of writing, the 14-day ADX for Greenross Ltd (GXL.AX) is 31.26. 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. Greenross Ltd (GXL.AX)’s Williams Percent Range or 14 day Williams %R currently sits at -7.14. 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.
With most types of investments, there is typically some level of risk. This is no different when dealing with the stock market. Investors have to decide how much risk is acceptable and plan accordingly. Many new stock market investors face the challenge of deciding where to begin. Following strategies that have proven to work in the past may be one way to go. Many investors will look to mimic the strategies of the most celebrated investors. Although this may be a good way to start, it may be necessary to fully understand every aspect that those successful investors examine. Blindly following trading plans without doing the proper research can lead to future trouble down the line if there is indeed a market shake-up.