Peeling the Onion Layer Back on Posco ADR (PKX)

The Mass Index Volatility reading for Posco ADR (PKX) 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 frequently 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 locate 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 points out, which occur when the index line (typically 25 periods) moves above 27 and then drops below 26.5.

Investors and traders continue to monitor technical levels of shares of Posco ADR (PKX). A sometimes used gizmo among technical stock analysts is the moving average. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a certain duration of time. Moving averages can be very useful for identifying peaks and troughs. They may also be used to aid the trader understand proper support and resistance levels for the stock. Currently, the 200-day MA is sitting at 71.96, and the 50-day is 58.46.

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The 14-day ADX for Posco ADR (PKX) is at present at 23.03. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would signify a very strong trend, and a value of 75-100 would point to an extremely strong trend. Checking in on some alternate technical levels, the 14-day RSI is at present at 43.05, the 7-day stands at 42.63, and the 3-day is sitting at 31.46. The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of equity price movements. The RSI was developed by J. Welles Wilder, and it oscillates between 0 and 100. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70. RSI can be used to discover general trends as well as finding divergences and failure swings.

At the time of writing, Posco ADR (PKX) has a 14-day Commodity Channel Index (CCI) of -6.04. Developed by Donald Lambert, the CCI is a versatile gizmo that may be used to aid locate an emerging trend or provide warning of extreme conditions. CCI generally measures the current price relative to the average price level over a specific time duration. CCI is relatively high when prices are much higher than average, and relatively low when prices are much lower than the average. Investors may be watching alternate technical indicators such as the Williams Percent Range or Williams %R. The Williams %R is a momentum indicator that helps sum oversold and overbought levels. This indicator compares the closing price of a stock in relation to the highs and lows over a certain time duration. A common look back duration is 14 days. Posco ADR (PKX)’s Williams %R at present stands at -58.75. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would indicate an overbought situation. A reading from -80 to -100 would indicate an oversold situation.

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