Colony NorthStar, Inc. (CLNS) has presented a rich pool of technical data in recent sessions. These are the trends we’ve been tracking and how we feel they should be played in the current environment. Some people say the past is not an accurate predictor of the future, but in trading stocks, past information is vital to plotting the course ahead. Much of this look-back to see-ahead can be gleaned marvelously from the technical charts and a rich variety of indicators.
Recent trading for (CLNS) has highlighted key trends upon which sound decisions can be based. The levels established for its relative 50 and 200 SMAs have suggested that the current trend is bearish. The current trend established by the SMAs also highlight the level of investor interest as the stock makes its way across varying levels of risk and upside potential. This has further created a general negative trading atmosphere. Current trends have also fed into volume levels which have seen weak buying and selling sentiments, reflecting the general indifference of interested parties across the broadest trading and investing spectrum. Combined these sentiment-based indicators and trends point to potential deeper impacts on cross-related technical factors capable of influencing overall upside.
The deeper test for the directional thrust of a stock is measured through two very important indicators: Relative strength indicator (RSI) and Stochastic measures. Both indicators offer up the distilled wisdom of whether the stock is oversold or overbought, i.e. are the sellers dominating activities, or are the buyers doping the bulk of the movement. For (CLNS) the 14-day RSI is 65.25% this indicates that on the balance of traditional RSI measures, the stock is neutral – neither overbought nor oversold and therefore not susceptible to any undue price movements in either direction. The stochastic picture offers up another powerful indicator of potential price movement for (CLNS). Stochastic data amassed over the past 30 days highlights a score of 91.82%. This indicates that the stock is overbought at current levels.
Leading indicators often do not tell all that a trader needs to know in order to make the best decisions. As a result, other technical machinery may need to be employed. Short-term movement for (CLNS) has offered up some interesting dynamics. Its +1.01 price change has produced positive change over the past 30 days. Longer term the stock has outperform the S&P 500 by 13.02%. This performance has come on the back of consistently lower daily volatility when matched against other stocks trading on the same exchange. Recent momentum has been largely informed by a historical volatility of 15.42%. This level of volatility is indicative of the speed (rate of change) of the underlying stock price and is therefore a helpful gauge at a glance. The risk-implied volatility is also being showcased via the average true range, currently 1.76. Keep in mind that ATR does not account for price direction therefore professional traders always utilize the price chart in tandem with the ATR indicator.