Technical Review: Donchian Lower Band Touches 8.39 for 21Vianet Group, Inc. (NASDAQ:VNET)

At some point in time, traders may have to deal with the overconfidence issue when dealing with the market. Traders may have times when they go on runs where everything works out. This may cause the individual to become overconfident in their ability and possibly lead to uninformed decisions late on. When the good times are rolling, it can be easy to think that the winners are a direct result of skill. This may be true, but if this is incorrect, it can lead to portfolio damage in the future. Having is long string of winning trades is a great thing, but markets can be cruel and have the ability to turn very quickly. Approaching every trade with the same research and examination may help the trader to make better decisions when a string of trades eventually go the wrong way.

Shares of 21Vianet Group, Inc. (NASDAQ:VNET) ended last session at 8.765. Following today’s trade, we note that the stock has moved 0.74712646% since the opening bell. The company has a current market cap of 983370700. The stock’s high price over the last month is presently 9.59.

Following the Chaikin Money Flow indicator, we note that the current 20 day value is -0.021414371 for 21Vianet Group, Inc. (NASDAQ:VNET). Traders will watch to see if the indicator can help confirm an ongoing trend. In the midst of a bullish trend, the CMF value staying above zero may point to continuous buying pressure and the possibility of a sustained rise in price. In the midst of a bearish trend, the CMF value staying below zero may show continuous selling pressure and the possibility of continued price decline.

Scanning the equity market, we note that the stock’s current Oscillator Rating is showing “Sell”. Traders will take note of many different factors when examining a stock’s health. Flipping over to the Moving Average Rating, we see that the current sentiment is pointing to a “Strong Sell”.

Watching volatility readings, we can see the current value for the stock is 2.8004668. Volatility for the week stands at 4.275238, and the monthly reading is 3.5141768. Volatility involves the amount of risk in relation to the amount of change in a stock’s value. Tracking the Bull Bear Power, we note that the stock is presently -0.33439195.

The 20 day Keltner Channels upper envelope is 9.151409. The 20 day Keltner Channels lower envelope is 8.772804. The Keltner Channels indicator was introduced by Chester Keltner in his book How to Make Money in Commodities. Keltner’s ideas have since been expanded upon and are widely used by technical traders.

Donchian Channels may be useful for technical traders. The primary function of the indicator is to measure volatility. The bands will widen when volatility is high, and they will become narrow with low volatility. The 20 day upper band level is 9.43. For the same period, the lower band level is 8.39.

Trading on volume of 2400, 21Vianet Group, Inc. (NASDAQ:VNET) has seen a change from the open of 0.045 since the stock opened at 8.72. Monitoring today’s activity, the stock has hit a high point of 8.79 and slipped to a low of 8.67. 

Checking in on the Awesome Oscillator, we see that the reading is -0.32864705. Traders may follow this oscillator to measure market momentum. Created by Bill Williams, the Awesome Oscillator calculates the difference of the 5 period and 34 period SMA.

Investors will be closely tracking the equity market as we charge through the last couple of months of the year. They may be doing a review of the portfolio to see what moves have worked and which ones haven’t. Reviewing specific holdings and past entry and exit points may help the investor develop new ideas to trade on in the future. Staying on top of market happenings and the economic landscape can be a challenge. Investors will be closely following the action over the next quarter to help gauge whether the bulls will stay out front, or if the bears will take the lead.    

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