Technical Views: Tracking the Numbers on Shares of Air New Zealand (AIR.NZ)

Monitoring the levels for Air New Zealand (AIR.NZ), we have made a note that the UO level is presently below 40. With the UO reading below 40, traders may be keeping an eye on the possibility that the stock is potentially in oversold territory.

Individuals invest in order to get a return on the investment. Nobody enters the equity markets with the hope of losing money. Returns on investments may come in different forms. With any stock investment, there may be some level of risk involved. Understanding the risk is important and should be considered very carefully. Of course, the stock may go up and become a winner, or shares could sour and turn into losers. Returns in the stock market may often mimic the amount of risk. Generally speaking, the greater the risk, the greater the reward. With the greater chance of reward comes the greater chance of losses. Keeping a balanced and diversified portfolio can help manage the risk associated with investing in the stock market.  

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. The 14-day RSI is currently sitting at 27.28, the 7-day is at 21.08, and the 3-day is spotted at 16.25 for Air New Zealand (AIR.NZ).

Air New Zealand (AIR.NZ)’s Williams Percent Range or 14 day Williams %R is sitting at -100.00. Typically, if the value heads above -20, the stock may be considered to be overbought. On the flip side, if the indicator goes under -80, this may signal that the stock is oversold.

Shares of Air New Zealand (AIR.NZ) have a 200-day moving average of 3.12. The 50-day is 3.02, and the 7-day is sitting at 2.69. Using a bigger time frame to assess the moving average such as the 200-day, may help block out the noise and chaos that is often caused by daily price fluctuations. In some cases, MA’s may be used as strong reference points for spotting support and resistance levels.

Active traders have a wide range of technical indicators at their disposal for when completing technical stock analysis. Currently, the 14-day ATR for Air New Zealand (AIR.NZ) is spotted at 0.06. 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.

Air New Zealand (AIR.NZ) currently has a 14-day Commodity Channel Index (CCI) of -134.56. Active investors may choose to use this technical indicator as a stock evaluation tool. Used as a coincident indicator, the CCI reading above +100 would reflect strong price action which may signal an uptrend. On the flip side, a reading below -100 may signal a downtrend reflecting weak price action. Using the CCI as a leading indicator, technical analysts may use a +100 reading as an overbought signal and a -100 reading as an oversold indicator, suggesting a trend reversal.

Investors are usually scouring the markets for that next great stock pick. Locating that special winner to jumpstart the portfolio may involve lots of diligent hard work. Filing through the massive amounts of data regarding public companies can be an overwhelming task. Many successful investors will approach the equity markets from various sides. This may include keeping a close eye on the fundamentals as well as the technical data. This may also include following sell-side analyst opinions and tracking what the big money institutions are buying or selling.  

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