Gigaset AG (GGS.DE) is on trader’s radar as the shares have moved below the MACD Histogram line, indicating a bearish chart. Shares recently touched 0.446 on a recent bid.
The MACD is calculated by subtracting the value of a 26-day exponential moving average from a 12-day exponential moving average. A 9-day dotted exponential moving average of the MACD (the “signal” line) is then plotted on top of the MACD. Taking a step further, the MACD-Histogram, which was developed by Thomas Aspray in 1986, measures the distance between MACD and its signal line (the 9-day EMA of MACD).
Like MACD, the MACD-Histogram is also an oscillator that fluctuates above and below the zero line. Aspray developed the MACD-Histogram to anticipate signal line crossovers in MACD. Because MACD uses moving averages and moving averages lag price, signal line crossovers can come late and affect the reward-to-risk ratio of a trade. Bullish or bearish divergences in the MACD-Histogram can alert chartists to an imminent signal line crossover in MACD.
For the average investor, figuring out how to best approach the stock market can be challenging. Many investors have probably seen at least one of their prized stocks take off in the last year, and they may be wondering which one is next. With the stock market still trading at super high levels, investors may be worried that a major shift will occur in the near future. Looking back over the first part of this year, investors may not have too much to fidget within the portfolio. If the stock market decides to reverse course and take a turn for the worse, investors may start questioning their strategy and become somewhat worried. Drastic shifts in the markets happen from time to time. Investors who are prepared for volatile market environments may be much better suited to weather the storm than those who are not. Crafting a plan that accounts for the regular ups and downs of the market may be a wise choice for the individual investor. This may mean shifting the mindset to be on the lookout for opportunities when they become available. Investors who have done the research and planning might be more secure in their stock choices should turbulent times arise.
When undertaking stock analysis, investors and traders may choose to view some additional technical levels. Gigaset AG (GGS.DE) currently has a 14-day Commodity Channel Index (CCI) of 57.73. 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 Gigaset AG (GGS.DE) is 17.31. 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. Gigaset AG (GGS.DE)’s Williams Percent Range or 14 day Williams %R currently sits at -30.00. 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.
Tracking other technical indicators, the 14-day RSI is presently standing at 54.23, the 7-day sits at 51.90, and the 3-day is resting at 52.57. 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 0.51, the 50-day is 0.39, and the 7-day is resting at 0.45. 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.
Traders may be going deeper into the playbook in order to scoop up profits in the current stock market environment. The first half of the year has produced plenty of big winners. Investors will be closely monitoring the most recent earnings releases to hopefully spot the next big mover. Traders may be looking to more closely define some major trends in order to identify which way the momentum is going to carry the stock market into the close of the calendar year. Keeping track of all the financial news and global happenings can be a tall order, even for the most seasoned investors. Staying the course while following a sound investing plan can help the individual investor become prepared for whatever lies ahead. The optimists still believe there is much more room for growth in the markets while the pessimists are calling for a major reversal in the near future. Traders and investors will be closely tracking the major economic news to help come to a solid conclusion about which way the markets are headed. Staying up on the fundamentals as well as the popular technical indicators may help the investor sort through the maze and prepare for the next stage.
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