After a recent look at shares of Duke Energy Corp (DUK), we have seen that the Percentage Price Oscillator Histogram level is under zero. Traders following the indicator may be using the reading to identify a possible sell.
Investors often have to face the issue of risk when dealing with the stock market. Creating portfolios that have the largest probability of attaining personal goals might be the course of action for many investors. Realizing that risk is a large part of the investment process can help the investor think realistically. Although completely eliminating risk is not reasonable, taking steps to reduce risk with proper portfolio management is well within reach for any investor. When first starting out, investors may be tempted to follow strategies from friends or colleagues that have dabbled in the markets with some success. Although using someone else’s strategy could work, chances are that eventually each investor will need to tweak the process in order to maximize their chances for success. Often times these lessons may end up being learned the hard way. With proper planning and execution, the hope is that the investor will arm themselves with enough knowledge to avoid mistakes early on.
{csv|m:199|id:590|s:Name}} (DUK) presently has a 14-day Commodity Channel Index (CCI) of -55.35. The CCI was created to typically stay within the reading of -100 to +100. Traders may use the indicator to determine if a stock is trending or to spot overbought/oversold conditions. A CCI reading above the +100 level would suggest that the stock is overbought and possibly primed for a correction. On the other hand, a reading of -100 would indicate that the stock is oversold.
The Williams Percent Range or Williams %R is another technical indicator worth checking out. Duke Energy Corp (DUK) currently has a 14 day Williams %R of -63.99. The Williams %R fluctuates between 0 and -100 measuring whether a security is overbought or oversold. The Williams %R is similar to the Stochastic Oscillator except it is plotted upside-down. Levels above -20 may indicate the stock may be considered is overbought. If the indicator travels under -80, this may signal that the stock is oversold. Chart analysts may also use the indicator to project possible price reversals and to define trends.
Investors might be looking to rebuild the portfolio as we move into the second half of the year. New investors can be tempted to try to maximize returns by owning one specific sector or be exposed to a fairly large single investment. By diversifying the portfolio, investors might be able to protect themselves from a sudden move against the position. Finding the correct portfolio balance is how many investors choose to approach the markets. This may take some time to master, and there may be some bumps along the way. Investors managing their own money may want to make sure that they know exactly what stocks are in the portfolio at all times. Keeping tabs on portfolio performance can also be a good way to make sure that it is weighted properly.
The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of stock 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 detect general trends as well as finding divergences and failure swings. The 14-day RSI is presently standing at 47.80, the 7-day is 41.06, and the 3-day is resting at 29.20.
A widely used tool 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 period of time. Moving averages can be very helpful for spotting peaks and troughs. They may also be used to help the trader figure out reliable support and resistance levels for the stock. Currently, the 200-day MA is sitting at 87.40.
The Average Directional Index or ADX is technical analysis indicator used to discern if a market is trending or not trending. The ADX alone measures trend strength but not direction. Using the ADX with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) may help determine the direction of the trend as well as the overall momentum. Many traders will use the ADX alongside other indicators in order to help spot proper trading entry/exit points. Currently, the 14-day ADX for Duke Energy Corp (DUK) is 8.49. 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.
As the markets continue to charge to new heights, investors may be trying to calculate where the markets will be moving in the next few months. Many market enthusiasts will be monitoring the current round of company earnings reports. A better than expected earnings period may help give the stock market another boost to even greater levels. At this point in time, investors may be a bit more cautious with stock selection. With so many names near all-time highs, investors may need to crunch the numbers to evaluate which stocks are still a good buy even at current price levels. Investors may also want to zoom out to the sector level and see if they can determine which sectors may be poised to outperform the overall market coming in to the second part of the year. Investors may also be looking at the overall economic conditions and striving to gain a sense of whether everything will align to keeping the bull run going.
