Australian United Gold Ltd (AUL.AX) shares are showing downward momentum according to the Aroon Down indicator as the reading has climbed above 70. With the strength building, investors might be taking a look at this name in conjuction with some other indicators.
The Aroon Oscillator was developed by Tushar Chande to highlight the start of a new trend and to measure trend strength. Chande first described the indicator in the September 1995 issue of Stocks & Commodities magazine. The Aroon indicator system consists of three lines: Aroon Up, Aroon Down, and the Aroon Oscillator which reflects the difference between the two. “Aroon” is a Sanskrit word meaning “dawn’s early light”.
Chande recommends the following signals:
Aroon Up level above 70 indicates a strong up-trend while Aroon Down above 70 indicates a strong down-trend. Aroon Up below 50 warns that the up-trend is weakening while Aroon Down below 50 signals that the down-trend is weakening. The two moving lower in close proximity indicates consolidation, and no clear trend.
It can be very difficult to keep emotions on the sidelines when making important investing decisions. Even if all the number crunching is done unemotionally, there may be a tendency for those feelings of excitement or dread to creep in. Once the trade is made, it can be super difficult to make sane decisions when markets go haywire. Investors may have made some trades that didn’t pan out as planned, and they may have the itch to sell quickly in order to stop further losses. Selling a stock just because it is going down or buying a stock just because it is going up, might lead to portfolio struggles in the future. Obtaining a grasp on the bigger picture may help investors see through the cloudiness and make clearer decisions when the time comes.
Shifting focus to some additional indicators, Australian United Gold Ltd (AUL.AX) currently has a 14 day Williams %R of 0.00. In general, if the level goes above -20, the stock may be considered to be overbought. Alternately, if the indicator goes under -80, this may signal that the stock is oversold. The Williams Percent Range or Williams %R is a technical indicator that was developed to measure overbought and oversold market conditions. The Williams %R indicator helps show the relative situation of the current price close to the period being observed.
We can also take a look at the Average Directional Index or ADX of Australian United Gold Ltd (AUL.AX). The ADX is used to measure trend strength. ADX calculations are made based on the moving average price range expansion over a specified amount of time. ADX is charted as a line with values ranging from 0 to 100. The indicator is non-directional meaning that it gauges trend strength whether the stock price is trending higher or lower. The 14-day ADX presently sits at 14.56. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would indicate a very strong trend, and a value of 75-100 would signify an extremely strong trend. At the time of writing, Australian United Gold Ltd (AUL.AX) has a 14-day Commodity Channel Index (CCI) of 51.85. Developed by Donald Lambert, the CCI is a versatile tool that may be used to help spot an emerging trend or provide warning of extreme conditions. CCI generally measures the current price relative to the average price level over a specific time period. CCI is relatively high when prices are much higher than average, and relatively low when prices are much lower than the average.
A commonly used tool among technical stock analysts is the moving average. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a certain period of time. Moving averages can be very helpful for identifying peaks and troughs. They may also be used to assist the trader figure out proper support and resistance levels for the stock. Currently, the 200-day MA for Australian United Gold Ltd (AUL.AX) is sitting at 0.01. The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of stock price movements. The RSI was developed by J. Welles Wilder, and it oscillates between 0 and 100. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70. RSI can be used to detect general trends as well as finding divergences and failure swings. The 14-day RSI is presently standing at 51.87, the 7-day is 53.98, and the 3-day is resting at 60.00.
Investors have many things to keep an eye on when trading the equity market. Riding through the ups and downs that come with market volatility may take some getting used to for beginners. Even if the investor does all the proper research and stock homework, things may not go as planned. One of the more important aspects of securing long-term success in the markets is learning how to execute a well-planned strategy all the way through to completion. Finding that right stocks to add to the portfolio may take some time and effort, but it can be accomplished. Deciding on the proper time to sell can be the trickiest part. Many investors will have the tendency to panic when markets are suffering. Although market panic may be fairly normal, it can have longer lasting adverse effects on the stock portfolio.
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