Technical Watch: SuperTrend Noted Below Stock Price for SERCO GROUP PLC LS-02 (SEO.DE)


Watching shares of SERCO GROUP PLC LS-02 (SEO.DE), we have recently seen that the SuperTrend is currently lower than recent stock price levels. Active traders may be tracking the signal in order to figure out if the stock has entered into sell territory.

As investors gear up for the stretch run towards the end of the year, the focus will be on which way stock market momentum seems to be shifting. Investors may be taking note of various economic reports and keeping a close eye on global political news. There are many factors that can affect the price of a stock. Tracking the markets from different angles may help to put together the bigger investing picture. Investors may be wondering if they have missed the boat as stocks have cooled off a bit recently. It may be wise to remember that there are always plenty of market opportunities to take advantage of. Diving into the fray may not be necessary until all the boxes are ticked off on the investor’s checklist.  

The 14-day ADX for SERCO GROUP PLC LS-02 (SEO.DE) is currently 27.97. Many chart analysts believe that an ADX reading over 25 would suggest a strong trend. A reading under 20 would suggest no trend, and a reading from 20-25 would suggest that there is no clear trend signal. The ADX was created by J. Welles Wilder to help determine how strong a trend is. In general, a rising ADX line means that an existing trend is gaining strength. The opposite would be the case for a falling ADX line.

Tracking stock levels, SERCO GROUP PLC LS-02 (SEO.DE) has a 14-day Commodity Channel Index (CCI) of 26.10. Even though the name contains the word commodity, CCI can be used on other investment tools such as stocks. The CCI was developed to typically stay within the -100 to +100 levels. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction. On the other hand, a reading of -100 would imply that the stock is oversold and possibly set for a rally.

The Relative Strength Index (RSI) is a highly popular momentum indicator used for technical analysis. The RSI can help display whether the bulls or the bears are currently strongest in the market. The RSI may be used to help spot points of reversals more accurately. The RSI was developed by J. Welles Wilder. As a general rule, an RSI reading over 70 would signal overbought conditions. A reading under 30 would indicate oversold conditions. As always, the values may need to be adjusted based on the specific stock and market. RSI can also be a valuable tool for trying to spot larger market turns. SERCO GROUP PLC LS-02 (SEO.DE) has a 14-day RSI of 58.83, the 7-day is at 54.06, and the 3-day is resting at 52.43.

Looking at some moving average levels on shares of SERCO GROUP PLC LS-02 (SEO.DE), the 200-day is at 1.09, the 50-day is 1.12, and the 7-day is sitting at 1.27. Moving averages can help identify trends and price reversals. They may also be used to help spot support and resistance levels. Moving averages are considered to be lagging indicators meaning that they confirm trends. A certain stock may be considered to be on an uptrend if trading above a moving average and the average is sloping upward. On the other side, a stock may be considered to be in a downtrend if trading below the moving average and sloping downward.

Checking in on the numbers for SERCO GROUP PLC LS-02 (SEO.DE), we can see that the company has a Williams Percent Range or 14 day Williams %R of -60.00. In general, if the reading goes above -20, the stock may be considered to be overbought. On the other end of the spectrum, if the indicator goes under -80, this may show the stock as being oversold. The Williams Percent Range or Williams %R is a technical indicator that was developed to measure overbought and oversold market conditions.

Often times, investors may become worried when the stock market is highly volatile. Being prepared for volatile situations can help ease the fears that come along with turbulence. Following a well-crafted plan might help ride out the ups and downs that are a normal part of dealing with the market. Investors should be prepared for market situations that provide ample opportunities. Although market downturns can be unsettling and cause panic, investors who are able to stay the course and keep calm may be able to spot good buying opportunities when the wider market is selling. 



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