Eland Oil & Gas Plc (ELA.L): Tracking the Technicals

Remigio Civitarese
Ottobre 12, 2017

When combined with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI), it can help decipher the trend direction as well. When the price is trending to the upside, the dots are below the price action and when the price is trending to the downside, the dots are above the price action. The Parabolic SAR will move from being above price to below price and the trader would cover any existing short positions and reverse direction and buy long. The Parabolic SAR will move from being below price to above price and the trader would sell any existing long positions and reverse direction and go short.

Moving average indicators are commonly tracked by technical stock analysts. Currently, Unique Fabricating Inc (UFAB) has a 14-day ATR of 0.31. A certain stock may be considered to be on an uptrend if trading above a moving average and the average is sloping upward. The Average True Range is an investor tool used to measure stock volatility. Although the CCI indicator was developed for commodities, it has become a popular tool for equity evaluation as well. Value investors seek stocks with high BTMs for their portfolios.

The Williams Percent Range or Williams %R is another technical indicator worth checking out. The Williams %R is a momentum indicator that helps measure oversold and overbought levels. The Williams %R is similar to the Stochastic Oscillator except it is plotted upside-down. A reading between 0 and -20 would indicate an overbought situation. The firm's 50-day moving average price is GBX 14.50 and its 200-day moving average price is GBX 15.86. ADX is used to gauge trend strength but not trend direction. The ADX is used to measure trend strength. 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. Value is to help identify companies that are the most undervalued. Currently, the 14-day ADX for Unique Fabricating Inc (UFAB) is 35.89. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would support a strong trend.

Parabolic SAR (or PSAR) is a simple, compact indicator that can provide some useful information when taking into account additional trends and factors.

We can also do some further technical analysis on the stock. Presently, Independent Oil & Gas Pl (IOG.L) has a 14-day Commodity Channel Index (CCI) of 26.80. The CCI was created to typically stay within the reading of -100 to +100. A CCI reading closer to +100 may indicate more buying (possibly overbought) and a reading closer to -100 may indicate more selling (possibly oversold). On the other hand, a reading of -100 would imply that the stock is oversold and possibly set for a rally. Checking on another technical indicator, the 14-day RSI is now sitting at 68.42, the 7-day rests at 76.64, and the 3-day is presently at 86.87 for Saturn Oil and Gas Inc (SMI.V).

The RSI, or Relative Strength Index, is a widely used technical momentum indicator that compares price movement over time. The opposite is the case when the RSI line is heading lower. One of the most popular ratios is the "Return on Assets" (aka ROA). Many traders keep an eye on the 30 and 70 marks on the RSI scale. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a specific period of time. Traders may use these levels to help identify stock price reversals.

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