Shares of Chatham Rock Phosphate Ltd (CRP.NZ) are moving on volatility today -20.00% or $-0.13 from the open. The NZX listed company saw a recent bid of $0.52 and 152 shares have traded hands in the session.
While it might be very important for investors to know exactly what is going on with their portfolios, it should be noted that short-term market fluctuations have the tendency to be quite volatile. Longer-term investors may not be overly concerned about stock price fluctuations on a day to day basis if they are in a position for the long haul. Shorter-term investors may be keeping a much closer eye on things if they had originally planned to get in or out at certain levels. Of course, staying up on technical and fundamental data may prove to be the difference between a good portfolio and a great portfolio. Many sharp investors may have taken a considerable amount of time crafting a unique strategy. Keeping focused on previously determined risk tolerance and goals may help drown out the day to day noise to keep the longer-term goals clearly in view.
Digging deeping into the Chatham Rock Phosphate Ltd (CRP.NZ) ‘s technical indicators, we note that the Williams Percent Range or 14 day Williams %R currently sits at -68.42. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would point to an overbought situation. A reading from -80 to -100 would signal an oversold situation. The Williams %R was developed by Larry Williams. This is a momentum indicator that is the inverse of the Fast Stochastic Oscillator.
Technical analysis is the study of what has happened to the price of a security in the past with the expectation that history tends to repeat itself. Many of the charts patterns in technical analysis have been used for more than 100 years, they are still believed to be relevant because they illustrate patterns in price movements that often repeat themselves. The repetitive nature of price movements is attributed to market psychology.
Chatham Rock Phosphate Ltd (CRP.NZ) currently has a 14-day Commodity Channel Index (CCI) of -54.59. 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.
Currently, the 14-day ADX for Chatham Rock Phosphate Ltd (CRP.NZ) is sitting at 47.31. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would identify a very strong trend, and a value of 75-100 would lead to an extremely strong trend. ADX is used to gauge trend strength but not trend direction. Traders often add the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of a trend.
The RSI, or Relative Strength Index, is a widely used technical momentum indicator that compares price movement over time. The RSI was created by J. Welles Wilder who was striving to measure whether or not a stock was overbought or oversold. The RSI may be useful for spotting abnormal price activity and volatility. The RSI oscillates on a scale from 0 to 100. The normal reading of a stock will fall in the range of 30 to 70. A reading over 70 would indicate that the stock is overbought, and possibly overvalued. A reading under 30 may indicate that the stock is oversold, and possibly undervalued. After a recent check, the 14-day RSI for Chatham Rock Phosphate Ltd is currently at 52.20, the 7-day stands at 34.16, and the 3-day is sitting at 8.79.
Many investors may strive to be in the stock market when the bulls are running and out of the market when the bears are in charge. Investors often use multiple strategies when setting up their portfolios. Some may rely solely on fundamental analysis, technical analysis, or a combination of both. Investing can be an extremely tough process. Individual investors often strive to gather and analyze vast amounts of information in order to make educated decisions. Often times, investors may have initial success in the stock market, and then things may turn sour. Confidence may be necessary to make the tougher decisions, but overconfidence may lead to an underperforming portfolio. Overconfidence may cause the investor to make poor decisions because they are relying too heavily on personal interpretations.
In today’s economic arena, investors are constantly bombarded with extreme predictions about the stock market. News outlets may be quick to preach the doomed fate of the bull market, or talk about how the market is set to take off to new extraordinary heights. These sensationalized headlines may cause investors be get distracted and stray from a sound approach. It may be tempting to make a drastic change to the portfolio when listening to these headlines. Remaining steadfast with a proven strategy may help ease the nerves and help regain some needed sanity in the markets. Market ebbs and flows can be notoriously hard to project. Sometimes the noise may be extremely loud, but there isn’t much being said at all. Investors may need to work harder to avoid the trap of trying to time the market based on some of the outrageous media headlines.