Increase Profit with Technical Analysis for: UBS Group AG

Cornelia Mascio
Aprile 17, 2018

The bank reported $0.17 earnings per share (EPS) for the quarter. Higher volume for a stock is an indicator of higher liquidity in the market. When combined with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI), it can help decipher the trend direction as well. As the momentum builds, we will be closely watching to see if they cross into Overbought territory. Fundamental and valuation analysis may not be enough, but it will give you the information necessary to press on into technical and fundamental analysis.

After a recent check, shares of PowerShares DWA NASDAQ Momentum ETF (:DWAQ) have been seen trading -7.57% off of the 50-day high and 6.34% away from the 50-day low. Traders may also use the reading to identify overbought/oversold conditions. 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. Taking a glance at the relative strength indictor, we note that the 14-day RSI is now at 53.37, the 7-day stands at 64.36, and the 3-day is sitting at 86.03. The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of stock price movements. The permissible values for RMI lie in the range between 0 and 100. Whilst a crossing of the center line may be interpreted as a warning of an impending trend change, only values over 70 are usually regarded as a buy signal and those below 30 as a sell signal. A reading over 70 would indicate that the stock is overbought, and possibly overvalued. On the other side of RSI values, an RSI reading of 30 or below is commonly interpreted as indicating an oversold or undervalued condition. Moving averages are considered to be lagging indicators meaning that they confirm trends. The ADX was introduced by J. Welles Wilder in the late 1970's and it has stood the test of time. The ADX is typically used in conjunction with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to help spot trend direction as well as trend strength. At the time of writing, the 14-day ADX for Tower Semiconductor (TSEM) is noted at 36.93. Many technical chart analysts believe that an ADX value over 25 would suggest a strong trend. A value of 25-50 would support a strong trend. Tower Semiconductor (TSEM) now has a 14 day Williams %R of -86.13. The RSI value will always move between 0 and 100. The Williams %R is similar to the Stochastic Oscillator except it is plotted upside-down. Levels above -20 may indicate the stock may be considered is overbought.

It is a positive indicator for investor portfolio value - when the price of a stock Investor owns goes up in value.

UBS ETF (UB45.L)'s Williams Percent Range or 14 day Williams %R presently is at -51.84. Some traders, in an attempt to avoid false signals from the RSI, use more extreme RSI values as buy or sell signals, such as RSI readings above 80 to indicate overbought conditions and RSI readings below 20 to indicate oversold conditions. The original guidelines focused on creating buy/sell signals when the reading moved above +100 or below -100. A high P/E may be indicative or a more expensive stock.

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