Are The Mass Index Levels for Kainos Group Plc (KNOS.L) Sending Investors Overboard?

The Mass Index Volatility reading for Kainos Group Plc (KNOS.L) has dropped below 26.5, indicating a potential move is ahead for the shares.  The Mass Index is a volatility indicator developed by Donald Dorsey and discussed in the June 1992 issue of Technical Analysis of Stocks & Commodities. By analyzing the narrowing and widening of trading ranges, the indicator identifies potential reversals based on market patterns that aren’t sometimes considered by technical analysts largely focused on singular price and volume movements.  The Mass Index indicator uses the difference between the high and low in a given interval to unveil potential price reversals. The main assumption is that prices tend to reverse when ranges widen beyond historical averages. Since this difference is constantly changing (ranges are always widening and narrowing), traders can use the Mass Index to generate trade reveals, which occur when the index line (typically 25 periods) moves above 27 and then drops below 26.5.

In terms of moving averages for Kainos Group Plc (KNOS.L), the 200-day is presently at 389.57, the 50-day is 404.38, and the 7-day is resting at 418.57. The moving average is a crowd-pleasing investing gizmo among traders. Moving averages can be used to assist filter out the day to day noise created by alternate factors. MA’s may be used to identify uptrends or downtrends, and they can be a prominent indicator for detecting a change in momentum for a particular stock. Many traders will use moving averages for alternate periods of time in conjunction with alternate indicators to assist gauge future share price action.

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Traders may also be paying close attention to RSI levels on shares of Kainos Group Plc (KNOS.L). The current 14-day RSI is currently sitting at 43.10, the 7-day is 31.34, and the 3-day is 10.10. The RSI, or Relative Strength Index is a crowd-pleasing oscillating indicator among traders and investors. The RSI operates in a range-bound area with values between 0 and 100. When the RSI line moves up, the stock may be experiencing strength. The opposite is the case when the RSI line is heading lower. Different time periods may be used when using the RSI indicator. The RSI may be more volatile using a shorter timeframe of time. Many traders keep an eye on the 30 and 70 marks on the RSI scale. A move above 70 is widely considered to show the stock as overbought, and a move below 30 would indicate that the stock may be oversold. Traders may use these levels to assist identify share price reversals.

When completing stock analysis, investors and traders may opt to review alternate technical levels. Kainos Group Plc (KNOS.L) presently has a 14-day Commodity Channel Index (CCI) of -106.35. Investors and traders may use this indicator to assist unveil price reversals, price extremes, and the strength of a trend. Many investors will use the CCI in conjunction with alternate indicators when evaluating a trade. The CCI may be used to unveil if a stock is entering overbought (+100) and oversold (-100) territory. The Average Directional Index or ADX is sometimes considered to be an vital gizmo for technical trading or investing. The ADX is a technical indicator developed by J. Welles Wilder used to figure out the strength of a trend. The ADX is sometimes used along with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of the trend. Presently, the 14-day ADX is resting at 35.92.

Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would signal a very strong trend, and a value of 75-100 would indicate an extremely strong trend.

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