Are The Mass Index Levels for Sohu.com Inc (SOHU) Sending Investors Overboard?

Sohu.com Inc (SOHU) are on trader’s watchlists today as the shares have moved below a key Mass Index level of 26.5.  When Donald Dorsey developed the Mass Index indicator, his rationale was that if the prevailing trend were going to change, the price range would need to widen. Dorsey looked for “reversal bulges” to signal a trend reversal. According to Dorsey, a bulge occurs when the Mass Index moves above 27. This initial bulge does not complete the signal though. Dorsey waited for this bulge to reverse with a move back below 26.50. Once the reversal bulge is complete, traders should use alternate analysis methods to think through the direction of the next move.

Keeping an eye on moving averages for Sohu.com Inc (SOHU), the 50-day is 18.92, the 200-day is at 28.41, and the 7-day is 21.36. Moving averages have the ability to be used as a powerful indicator for technical stock analysis. Following multiple time frames using moving averages can aid investors determine where the stock has been and aid think through where it may be possibly going. The simple moving average is a mathematical calculation that takes the average price (mean) for a given amount of time.

Traders may also be paying close attention to RSI levels on shares of Sohu.com Inc (SOHU). The current 14-day RSI is at present sitting at 63.72, the 7-day is 69.74, and the 3-day is 78.68. The RSI, or Relative Strength Index is a prime 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 course 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 aid identify equity price reversals.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.

When completing stock analysis, investors and traders may opt to review alternate technical levels. Sohu.com Inc (SOHU) presently has a 14-day Commodity Channel Index (CCI) of 177.93. Investors and traders may use this indicator to aid detect 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 detect if a stock is entering overbought (+100) and oversold (-100) territory. The Average Directional Index or ADX is frequently considered to be an necessary gadget for technical trading or investing. The ADX is a technical indicator developed by J. Welles Wilder used to think through the strength of a trend. The ADX is frequently 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 23.36.

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.

Leave a Comment