Zooming in on shares of S&P GSCI Commodity-Indexed Ishares ETF (GSG) we have seen that the stock price has gained 1.00% over the last 4-weeks. If we look back over the last half-year, we can see that the stock has moved -10.93%. For the last full-year, shares have seen a change of -4.05%. Following recent action, shares have changed -0.72% over the last 5 trading periods.
Investors often conduct stock analysis to help figure out which ones are a good buy, and at what price should they get in. The two main types of stock research used by investors are fundamental and technical analysis. Some investors will only study the fundamentals while others will only follow the technicals. Many will choose to combine the two methods in order to get a more well-rounded view of the stock. Fundamental analysis entails following company data. This may include studying the balance sheet, profit and loss statements, and the overall competency of company management. Fundamental analysts often use financial ratios to help understand company information. Technical analysts often study charts in order to define trends. This research is typically not concerned with how the underlying financials of the company look, but how the stock has been trading.
Technical traders may be looking at recent indicator levels on shares of S&P GSCI Commodity-Indexed Ishares ETF (GSG). After a recent check, the 50-day Moving Average is 14.91, the 200-day Moving Average is 16.71, and the 7-day is noted at 15.19. Moving averages have the ability to be used as a powerful indicator for technical stock analysis. Following multiple time frames using moving averages can help investors figure out where the stock has been and help determine where it may be possibly going. The simple moving average is a mathematical calculation that takes the average price (mean) for a given amount of time.
We can also take a look at the Average Directional Index or ADX of S&P GSCI Commodity-Indexed Ishares ETF (GSG). 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 14.43. 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.
Looking further at additional technical indicators we can see that the 14-day Commodity Channel Index (CCI) for S&P GSCI Commodity-Indexed Ishares ETF (GSG) is sitting at 9.84. CCI is an indicator used in technical analysis that was designed by Donald Lambert. Although it was originally intended for commodity traders to help identify the start and finish of market trends, it is frequently used to analyze stocks as well. A CCI reading closer to +100 may indicate more buying (possibly overbought) and a reading closer to -100 may indicate more selling (possibly oversold).
The Williams Percent Range or Williams %R is another technical indicator worth checking out. S&P GSCI Commodity-Indexed Ishares ETF (GSG) currently has a 14 day Williams %R of -44.83. The Williams %R fluctuates between 0 and -100 measuring whether a security is overbought or oversold. 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. If the indicator travels under -80, this may signal that the stock is oversold. Chart analysts may also use the indicator to project possible price reversals and to define trends.
Tracking other technical indicators, the 14-day RSI is presently standing at 51.90, the 7-day sits at 50.47, and the 3-day is resting at 53.13 for S&P GSCI Commodity-Indexed Ishares ETF (GSG). The Relative Strength Index (RSI) is a highly popular technical indicator. The RSI is computed base on the speed and direction of a stock’s price movement. The RSI is considered to be an internal strength indicator, not to be confused with relative strength which is compared to other stocks and indices. The RSI value will always move between 0 and 100. One of the most popular time frames using RSI is the 14-day.
Traders often employ unique systems when trying to beat the stock market. There are many different trading strategies or systems that can be used. New traders may find out very quickly that trading without a plan is a recipe for ruin. When starting out, it may require a lot of focus and dedication just to stay afloat. With more experience and hard work, traders may be able to eventually scoop up some of those profits that they were expecting when they started out. Some traders may have a few big wins right out of the gate. This may lead to overconfidence in the future if the proper precautions are not taken. Traders constantly need to be paying attention to everything that is going with the stock market. Moves can happen in the blink of an eye and without any notice. Being prepared to take a position at a moment’s notice can pay off big when the opportunity arises.