Watching the trading indicators on shares of Sierra Oncology Inc (SRRA), we can see that the twenty one day Wilder Moving Average is presently above the 50 day Simple Moving Average. Traders following the signals may be on the lookout for the formation of a strong near-term trend.
Investors may be trying to figure out what stocks will give a boost to portfolio performance over the next few months. Value investors may be looking for current value in the market. They are generally looking for bargains and interested in uncovering those stocks that may be primed for a run but have fallen out of favor with Wall Street. Growth investors may be looking to target companies that are able to advance earnings faster than average. This may include searching for those industries that have strong growth trends and a proven track record of strong sales and earnings growth.
Tracking other technical indicators, the 14-day RSI is presently standing at 21.32, the 7-day sits at 9.05, and the 3-day is resting at 0.61 for Sierra Oncology Inc (SRRA). 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.
One technical indicator that may help gauge the strength of market momentum is the Average Directional Index or ADX. At the time of writing, the 14-day ADX for Sierra Oncology Inc (SRRA) is standing at 23.11. The ADX was created by J. Welles Wilder to help determine how strong a trend is. In general, a rising ADX line means that an existing trend is gaining strength. The opposite would be the case for a falling ADX line. Many chart analysts believe that an ADX reading over 25 would suggest a strong trend. A reading under 20 would suggest no trend, and a reading from 20-25 would suggest that there is no clear trend signal.
Looking further at additional technical indicators we can see that the 14-day Commodity Channel Index (CCI) for Sierra Oncology Inc (SRRA) is sitting at -147.82. 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).
Active traders have a wide variety of technical indicators at their disposal for completing technical stock analysis. Presently, the 14-day ATR for Sierra Oncology Inc (SRRA) is spotted at 0.03. First developed by J. Welles Wilder, the ATR may assist traders in determining if there is heightened interest in a trend, or if extreme levels may be signaling a reversal. 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.
Shares of Sierra Oncology Inc (SRRA) have a 7-day moving average of 0.36. Moving averages can help spot trends and price reversals. They may also be used to help find support or resistance levels. Moving averages are considered to be lagging indicators meaning that they confirm trends.
Some investors may be looking to trade the trend and capitalize on strong current performers. Other investors may look to take a contrarian approach. This can involve looking for names that have been overlooked by the crowd. There are many different contrarian approaches that investors may choose to use. Going against the crowd may require a lot more homework and confidence. There may be hidden gems out there, but is may be wise to investigate why nobody else seems to want to get into the name. Finding that perfect strategy may take a lot of study and dedication. Taking shortcuts in the market can have severe negative effects on the long-term health of the portfolio.