Desjardins CDN Pref Share ETF (DCP.TO)’s indicators and moving averages are pointing to a potential reversal at the Chikou line has ducked under the Tenkan, indicating that a reversal of price might be nearing. The Chikou span is the lagging indicator component of the Ichimoku Kinko Hyo candlestick trading model. The Chikou is a line of the most recent price action, but it is plotted 26 trading periods into the past. Ichimoku is a finely-tuned, integrated charting system where the five lines all work in concert to produce the end result. We emphasize the word “system” here because it is absolutely key to understanding how to use the various trading strategies we outline in this section. Every strategy covered below is to be used and measured against the prevailing Ichimoku “picture” rather than in isolation.
Investors might be looking high and low for quality stocks that have fallen out of favor with the investing community. There are plenty of stocks that get continuous coverage from the big media outlets, but there are many others that may be hiding behind the scenes. Conducting thorough stock research can help the investor isolate certain stocks that might be ready for a near-term bounce. With the stock market still trading near record levels, investors will be looking for any opportunity to pounce on shares that might have been left behind for whatever reason.
Technical analysts may be interested in how Desjardins CDN Pref Share ETF (DCP.TO) is trading in relation to some moving averages. Presently, the 200-day MA is resting at 20.03, and the 50-day is 18.70. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a specific period of time. Moving averages can be very useful for identifying peaks and troughs. They may also be used to help the trader calculate reliable support and resistance levels for the stock.
The 14-day ADX for Desjardins CDN Pref Share ETF (DCP.TO) is currently at 26.99. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would signify a very strong trend, and a value of 75-100 would point to an extremely strong trend. Checking in on some other technical levels, the 14-day RSI is currently at 46.49, the 7-day stands at 53.83, and the 3-day is sitting at 59.36. 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.
At the time of writing, Desjardins CDN Pref Share ETF (DCP.TO) has a 14-day Commodity Channel Index (CCI) of 30.03. 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. Investors may be watching other technical indicators such as the Williams Percent Range or Williams %R. The Williams %R is a momentum indicator that helps measure oversold and overbought levels. This indicator compares the closing price of a stock in relation to the highs and lows over a certain time period. A common look back period is 14 days. Desjardins CDN Pref Share ETF (DCP.TO)’s Williams %R presently stands at -45.61. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would indicate an overbought situation. A reading from -80 to -100 would indicate an oversold situation.
When it comes to the stock market, many traders rely on technical analysis to identify trades. With technical analysis, it is generally believed that stock price movements follow trends. When the trend is determined, the thought is that price movements in the future are more likely to go in the same direction as the trend, and not against it. Another aspect of technical analysis is the idea that history tends to repeat itself especially regarding the movement of the stock’s price. Technical analysts will use chart patterns to help study market moves and identify these trends. Some traders will use highly complex charts while others may only follow a few major indicators.