Ichimoku traders are closely watching shares of Plexus Holdings Plc (POS.L) as the equity’s price has tipped below the Tenkan moving average line, creating an environment ripe for a potential near-term reversal. The chikou span represents one of Ichimoku’s most unique features; that of time-shifting certain lines backwards or forwards in order to gain a clearer perspective of price action. In the chikou span’s case, the current closing price is time-shifted backwards by 26 periods. While the rationale behind this may at first appear confusing, it becomes very clear once we consider that it allows us to quickly see how today’s price action compares to the price action of 26 periods ago, which can help determine trend direction. The Ichimoku Kinko Hyo technique offers the chance to obtain many different types of operating signals through the use of a single graph. As for all trading techniques, when we are using the Ichimoku Kinko Hyo for our operations, it is always advisable to take into account other elements (volumes, sentiment, seasonality, oscillators, etc …), but certainly the immediate graphic understanding of the trend and its evolution represent the strongest point of the Ichimoku technique.
Stock market investing can sometimes become highly emotional. Being able to leave emotions out of the major investing decisions might be tricky, but it may end up being a portfolio savior down the road. Nobody wants to see a thoroughly researched stock pick underperform. Holding onto the hope that a certain stock has to bounce back may lead to later problems. Of course, it can be very hard for humans to admit when a mistake was made. Finding the ability to detach from a position can be tough. Humans make mistakes, but being able to learn from those mistakes moving forward can help with achieving long term success in the market.
Shares of Plexus Holdings Plc (POS.L) have recently come under renewed examination. The Relative Strength Index (RSI) is one of multiple popular technical indicators created by J. Welles Wilder. Wilder introduced RSI in his book “New Concepts in Technical Trading Systems” which was published in 1978. RSI measures the magnitude and velocity of directional price movements. The data is represented graphically by fluctuating between a value of 0 and 100. The indicator is computed by using the average losses and gains of a stock over a certain time period. RSI can be used to help spot overbought or oversold conditions. An RSI reading over 70 would be considered overbought, and a reading under 30 would indicate oversold conditions. A level of 50 would indicate neutral market momentum. Checking on the Relative Strength Index, the 14-day RSI is presently standing at 39.99, the 7-day is 35.20, and the 3-day is resting at 30.64.
Currently, the 14-day ADX for Plexus Holdings Plc (POS.L) is sitting at 13.54. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would identify a very strong trend, and a value of 75-100 would lead to an extremely strong trend. ADX is used to gauge trend strength but not trend direction. Traders often add the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of a trend.
Investors have the ability to use technical indicators when completing stock research. At the time of writing, Plexus Holdings Plc (POS.L) has a 14-day Commodity Channel Index (CCI) of -165.37. 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. In terms of Moving Averages, the 7-day is resting at 47.58. Moving averages have the ability to be used as a powerful indicator for technical stock analysis. Interested traders may be keeping an eye on 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. Plexus Holdings Plc (POS.L)’s Williams Percent Range or 14 day Williams %R currently sits at -88.00. 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.
One of the staple principles for investing is buy low and sell high. While this may sound obvious, many investors end up doing just the opposite. When dealing with the stock market, investors often have to be careful not to let their irrational side take over when making decisions. Investors may get caught up in the flurry when stocks are skyrocketing. The temptation to get on board and be part of the ride can lead to some ill-planned moves. Focusing on near-term movements might be included in the game plan for some, but for others, this may be distracting from the bigger picture and long-term plan. Stocks that become widely publicized and popular in the media may not be the right addition to the individual investor’s portfolio. Conducting the due diligence on any position can help the investor make sure that they are getting in at a good time and price.