Tale of the Ticker: Urbanise com Ltd (UBN.AX) Moves on Volume

Shares of Urbanise com Ltd (UBN.AX) have seen the needle move -7.14% or -0.004 in the most recent session. The ASX listed company saw a recent bid of $0.052 on 32432 volume. 

Market corrections can happen at any time. Often times, these corrections can bring along ominous forecasts from the investing community. With the market still chugging along, it is important to remember that market corrections can be quite normal in bull market runs. Investors may take these opportunities to scoop up some favorites at cheaper prices. As we get closer to the next round of company earnings releases, all eyes will be watching to see how companies have performed over the past quarter. Investors may want to take a look at sell-side analyst revisions in the weeks and days leading up to the report. Investors and analysts will both be intently watching to see if the company can hit and exceed expectations. 

Taking a deeper look into the technical levels of Urbanise com Ltd (UBN.AX), we can see that the Williams Percent Range or 14 day Williams %R currently sits at -90.00. 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.

Urbanise com Ltd (UBN.AX) currently has a 14-day Commodity Channel Index (CCI) of -77.55. 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.

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, Urbanise com Ltd’s  14-day RSI is currently at 26.86, the 7-day stands at 22.85, and the 3-day is sitting at 23.28.

Currently, the 14-day ADX for Urbanise com Ltd (UBN.AX) is sitting at 35.88. 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.

In technical analysis prices of securities tend to move in observable trends with a tendency to stay in the trend. The trend is considered to be intact until the trend line is broken. After a trend has been established, the future price movement is more likely to be in the same direction as the trend than to be against it. This is where the old adage “the trend is your friend” comes from, meaning you should trade in the same direction as the trend.

When dealing with the stock market, investors may seek to make trades that will limit regret and create a sense of pride. Often times, investors may be challenged with trying to figure out the proper time to sell winners or let go of losers. Of course, nobody wants to sell a winner if it looks like there may be more profits to be had. On the other hand, nobody wants to hold on to a loser for so long that severe losses pile up. Investors often need to assess their own appetite for risk. Some may be able to stomach large swings on a daily basis. Others may not be able to take the volatility when dealing with riskier investments. Risk decisions may be made on past outcomes, and investors who have experienced previous profits and gains may be more likely to take a bigger risk in the future. Those who have only seen substantial losses may be more risk adverse in the future. 

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