Business

Emrg Mkts Curr Hedged Ishares MSCI ETF (HEEM)’s AroonUp Indicator Showing Strong Momentum

Emrg Mkts Curr Hedged Ishares MSCI ETF (HEEM) has popped on trader’s radar as the share momentum has climbed above the Aroon Down key level of 70.

The “Aroon Indicator” is a popular member of the “Oscillator” family of technical indicators. Tushar Chanda developed the Aroon Indicator in 1995 to help traders determine the strength of a trend and whether pricing behavior was favoring a trend or sideways action. Traders use the “Up and Down” indicator lines to judge the strength of a trend, as absolute values signify strength, but simultaneous changes reflect a market that has yet to make up its mind.  The Aroon Up trend when it reaches above 70 indicates that the uptrend is gaining momentum.  Conversely when the Aroon Down indicator climbs above 70, bearish momentum is building. 

As we close in on the end of the calendar year, investors may be trying to visualize potential trades for the New Year. There are many professionals that believe that there is still plenty of room for stocks to run even at current levels. Preparing the game plan for the next few quarters may give the investor some new ideas. Staying focused and maintaining discipline may help guide the investor to unchartered territory in the coming months. Tracking market events from multiple angles may also help provide some enhanced perspective.  

Traders also may be narrowing in on the ATR or Average True Range indicator when reviewing technicals. At the time of writing, Emrg Mkts Curr Hedged Ishares MSCI ETF (HEEM) has a 14-day ATR of 0.25. The average true range indicator was created by J. Welles Wilder in order to measure volatility. The ATR may assist traders with figuring out the strength of a breakout or reversal in price. It is important to note that the ATR was not designed to determine price direction or to predict future prices.

Some investors may find the Williams Percent Range or Williams %R as a helpful technical indicator. Presently, Emrg Mkts Curr Hedged Ishares MSCI ETF (HEEM)’s Williams Percent Range or 14 day Williams %R is resting at -46.22. Values can range from 0 to -100. A reading between -80 to -100 may be typically viewed as strong oversold territory. A value between 0 to -20 would represent a strong overbought condition. As a momentum indicator, the Williams R% may be used with other technicals to help define a specific trend.

Investors may use multiple technical indicators to help spot trends and buy/sell signals. Presently, Emrg Mkts Curr Hedged Ishares MSCI ETF (HEEM) has a 14-day Commodity Channel Index (CCI) of -25.56. 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 signals when the reading moved above +100 or below -100. Traders may also use the reading to identify overbought/oversold conditions.

The Average Directional Index or ADX is a popular technical indicator designed to help measure trend strength. Many traders will use the ADX in combination with other indicators in order to help formulate trading strategies. Presently, the 14-day ADX for Emrg Mkts Curr Hedged Ishares MSCI ETF (HEEM) is 17.93. In general, 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. The ADX alone was designed to measure trend strength. When combined with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI), it can help decipher the trend direction as well.

Taking a peek at some Moving Averages, the 200-day is at 24.58, the 50-day is 24.70, and the 7-day is sitting at 25.10. The moving average is a popular tool among technical stock analysts. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a specific period of time. Moving averages can be very useful for identifying peaks and troughs. They may also be used to help the trader figure out proper support and resistance levels for the stock.

Investors have plenty to keep up with when following day to day business news. Sifting through the headlines can be cumbersome, and figuring out which data to pay attention to can be very time consuming. News events can play a big role in the investing world. Big news has the ability to push a stock up or down. Sometimes the move may be justified, and other times it may not be. Disciplined investors are usually skilled at determining which information to focus on. Overreactions can play a large role in determining the long-term health of a portfolio. Investors often have to understand that a great stock can see periods of decline just as a weak stock may experience periods of strength. Putting in the research hours can help the investor prepare for opportunities when they spot unusual action in the stock market.

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