Powerleader Science & Tech (8236.HK) have moved lower over the course of the past week revealing negative downward near-term momentum for the shares. In taking a look at recent performance, we can see that shares have moved Technology% over the past week, HKSE% over the past 4-weeks, 2.10% over the past half year and 0.00% over the past full year.
For technical traders, support and resistance lines play an important role. The support line generally displays the lowest price that investors will let a stock trade. This means that the stock price is unlikely to drop under this level. When support lines are breached, chartists may be watching for shares to move lower until they reach the next support level. The resistance line is the exact opposite of the support line. The resistance level is typically the highest price that investors will allow the stock to trade at. Traders will carefully watch the stock price when a resistance level is broken. The thought is that the price will continue to move towards the next level of resistance. Traders and investors may use support and resistance lines for various purposes. One popular use of these lines is to identify possible entry and exit points for trades.
We can also take a look at the Average Directional Index or ADX of Powerleader Science & Tech (8236.HK). The ADX is used to measure trend strength. ADX calculations are made based on the moving average price range expansion over a specified amount of time. ADX is charted as a line with values ranging from 0 to 100. The indicator is non-directional meaning that it gauges trend strength whether the stock price is trending higher or lower. The 14-day ADX presently sits at 23.18. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would indicate a very strong trend, and a value of 75-100 would signify an extremely strong trend. At the time of writing, Powerleader Science & Tech (8236.HK) has a 14-day Commodity Channel Index (CCI) of -61.38. Developed by Donald Lambert, the CCI is a versatile tool that may be used to help spot 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 period. CCI is relatively high when prices are much higher than average, and relatively low when prices are much lower than the average.
Powerleader Science & Tech (8236.HK) currently has a 14 day Williams %R of -68.75. In general, if the level goes above -20, the stock may be considered to be overbought. Alternately, if the indicator goes under -80, this may signal that the stock is oversold. The Williams Percent Range or Williams %R is a technical indicator that was developed to measure overbought and oversold market conditions. The Williams %R indicator helps show the relative situation of the current price close to the period being observed.
A commonly 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 identifying peaks and troughs. They may also be used to assist the trader figure out proper support and resistance levels for the stock. Currently, the 200-day MA for Powerleader Science & Tech (8236.HK) is sitting at 2.24. 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 50.31, the 7-day is 44.82, and the 3-day is resting at 32.88.
Stock market players may have differing opinions on which type of research approach is best. Individual investors who prefer buy and hold strategies may be more likely to be studying the fundamentals. Traders that are constantly buying and selling shares may be more concerned with technical analysis. High frequency traders may be willing to take on more risk entering the market. For these types of traders, entry and exit points become far more important. Traders may be relying solely on charts in order to capture profits based on day to day, hour to hour, or minute by minute price fluctuations. Long term investors may not be as concerned with the daily ups and downs of the market.