Market Update: Plus DI Higher Than Minus DI on Shares of NuFarm Ltd (NUF.AX)

Checking in on the numbers for NuFarm Ltd (NUF.AX), we have recently seen that the +DI is higher than the -DI. Traders may be keeping close watch to see if the stock is showing signs of bullish momentum.

Often times, investors may become worried when the stock market is highly volatile. Being prepared for volatile situations can help ease the fears that come along with turbulence. Following a well-crafted plan might help ride out the ups and downs that are a normal part of dealing with the market. Investors should be prepared for market situations that provide ample opportunities. Although market downturns can be unsettling and cause panic, investors who are able to stay the course and keep calm may be able to spot good buying opportunities when the wider market is selling. 

Shifting gears to the Relative Strength Index, the 14-day RSI is currently sitting at 49.89, the 7-day is 59.61, and the 3-day is currently at 77.20 for NuFarm Ltd (NUF.AX). The Relative Strength Index (RSI) is a highly popular momentum indicator used for technical analysis. The RSI can help display whether the bulls or the bears are currently strongest in the market. The RSI may be used to help spot points of reversals more accurately. The RSI was developed by J. Welles Wilder. As a general rule, an RSI reading over 70 would signal overbought conditions. A reading under 30 would indicate oversold conditions. As always, the values may need to be adjusted based on the specific stock and market. RSI can also be a valuable tool for trying to spot larger market turns.

Moving average indicators are used widely for stock analysis. Many traders will use a combination of moving averages with different time frames to help review stock trend direction. One of the more popular combinations is to use the 50-day and 200-day moving averages. Investors may use the 200-day MA to help smooth out the data a get a clearer long-term picture. They may look to the 50-day or 20-day to get a better grasp of what is going on with the stock in the near-term. Presently, the 200-day moving average is at 6.59 and the 50-day is 5.79.

At the time of writing, the 14-day ADX for NuFarm Ltd (NUF.AX) is 25.45. Many technical chart analysts believe that an ADX value over 25 would suggest a strong trend. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal. The ADX is typically plotted along with two other directional movement indicator lines, the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI). Some analysts believe that the ADX is one of the best trend strength indicators available.

Traders may be focusing on other technical indicators for stock assessment. Presently, NuFarm Ltd (NUF.AX) has a 14-day Commodity Channel Index (CCI) of 62.64. The CCI technical indicator can be used to help determine if a stock is overbought or oversold. CCI may also be used to help discover divergences that could possibly signal reversal moves. A CCI closer to +100 may provide an overbought signal, and a CCI near -100 may offer an oversold signal.

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. NuFarm Ltd (NUF.AX)’s Williams %R presently stands at -33.33. 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.

Investors may be combing through all the latest company earnings reports. They may be trying to figure out which companies look like they are going to be strong over the next few quarters. Earnings reports have the ability to cause dramatic stock price swings. Many investors will stay away from making any big trades around earnings announcements. When the dust settles, it may be much easier to determine whether a stock is worth buying or if it should be sold. Keeping a close eye on historical earnings results can provide some good insight. Companies that consistently produce solid earnings may be worth looking into further, especially if the investor is on the fence about getting into the name.

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