Has this Stock Come of Age? Investors Rolling the Dice on Exponent Inc (EXPO)

The Mass Index Volatility reading for Exponent Inc (EXPO) 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 Often times 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 uncloak 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 implies, which occur when the index line (typically 25 periods) moves above 27 and then drops below 26.5.

Interested traders may be keeping an eye on the Williams Percent Range or Williams %R. Williams %R is a faddish technical indicator created by Larry Williams to assist identify overbought and oversold situations. Investors will commonly use Williams %R in conjunction with different trend indicators to assist uncloak possible stock turning points. Exponent Inc (EXPO)’s Williams Percent Range or 14 day Williams %R right now sits at -81.56. In general, if the indicator goes above -20, the stock may be considered overbought. Alternately, if the indicator goes below -80, this may point to the stock being oversold.

Another technical indicator that might serve as a powerful mechanism for measuring trend strength is the Average Directional Index or ADX. The ADX was introduced by J. Welles Wilder in the late 1970’s and it has stood the test of time. The ADX is typically used in conjunction with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to assist uncloak trend direction as well as trend strength. At the time of writing, the 14-day ADX for Exponent Inc (EXPO) is noted at 22.54. Many technical 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.

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Investors may use various technical indicators to assist uncloak trends and buy/sell implies. Presently, Exponent Inc (EXPO) has a 14-day Commodity Channel Index (CCI) of -141.83. The CCI was developed by Donald Lambert. The assumption behind the indicator is that investment instruments move in cycles with highs and lows coming at certain periodic intervals. The original guidelines focused on creating buy/sell implies when the reading moved above +100 or below -100. Traders may also use the reading to identify overbought/oversold conditions.

Taking a look at different technical levels, the 3-day RSI stands at 23.36, the 7-day sits at 28.65 and the 14-day (most common) is at 37.08. The Relative Strength Index (RSI) is an Often times employed momentum oscillator that is used to sum the speed and change of share price movements. When charted, the RSI can serve as a visual means to monitor historical and current strength or weakness in a certain market. This measurement is based on closing prices over a specific stage of time. As a momentum oscillator, the RSI operates in a set range. This range falls on a scale between 0 and 100. If the RSI is closer to 100, this may indicate a stage of stronger momentum. On the flip side, an RSI near 0 may signal weaker momentum. The RSI was originally created by J. Welles Wilder which was introduced in his 1978 book “New Concepts in Technical Trading Systems”.

Keeping an eye on Moving Averages, the 50-day is 50.58, the 200-day is at 47.83, and the 7-day is 49.57 for Exponent Inc (EXPO). Moving averages have the ability to be used as a powerful indicator for technical stock analysis. Following multiple time frames using moving averages can assist investors think through where the stock has been and assist understand 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.

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