Diana Shipping Inc. (DSX) shares have seen the Money Flow Indicator climb above 60, potentially spelling a near-term reversal if it crosses above the 70 line. The Money Flow Indicator is a unique indicator that combines momentum and volume with an RSI formula. Because of its incorporation of volume, the MFI is better suited to identify potential reversals using both overbought/oversold levels and bullish/bearish divergences. As with all indicators, the MFI should not be used by itself. A pure momentum oscillator, such as RSI, or pattern analysis can be combined with the MFI to increase signal accuracy.
The MFI was created by Gene Quong and Avrum Soudack and they believed a reading above 70-80 would signify Overbought territory where a reading below 20-10 would indicate that the conditions were indicative of an Oversold price level.
Investors are always striving to make wiser decisions when it comes to handling the markets. There are so many options available, and that can make things more complex. Beginning with a solid approach can help ease the investor’s initial foray into the stock market. Accumulating market knowledge may take a lot of time and effort. Many investors may find out the hard way that there is no easy way to beat the markets. Many investors are teased with investment tips from friends or colleagues. It can be very tempting to take advice from someone who has a track record of beating the market. However, the old saying remains the same; past results may not indicate future results. Investors may find that doing their own research can provide a huge boost to portfolio performance.
Investors might be interested in taking a closer look at additional stock technical levels. After a recent check, Diana Shipping Inc. (DSX) has a 14-day ATR of 0.18. The average true range indicator was created by J. Welles Wilder in order to measure volatility. The ATR may help traders to determine the strength of a breakout or reversal in price. It is important to mention that the ATR was not designed to calculate price direction or to predict future prices.
Currently, the 14-day ADX for Diana Shipping Inc. (DSX) is sitting at 18.31. 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.
Checking in on some other technical levels, the 14-day RSI is currently at 49.57, the 7-day stands at 56.55, and the 3-day is sitting at 65.61. Many investors look to the Relative Strength Index (RSI) reading of a particular stock to help identify overbought/oversold conditions. The RSI was developed by J. Welles Wilder in the late 1970’s. Wilder laid out the foundation for future technical analysts to further investigate the RSI and its relationship to underlying price movements. Since its inception, RSI has remained very popular with traders and investors. Other technical analysts have built upon the work of Wilder. The 14-day RSI is still a widely popular choice among technical stock analysts.
Investors may be watching other technical indicators such as the Williams Percent Range or Williams %R. The Williams %R is a momentum indicator that helps measure oversold and overbought levels. This indicator compares the closing price of a stock in relation to the highs and lows over a certain time period. A common look back period is 14 days. Diana Shipping Inc. (DSX)’s Williams %R presently stands at -27.69. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would indicate an overbought situation. A reading from -80 to -100 would indicate an oversold situation.
Taking a closer look from a technical standpoint, Diana Shipping Inc. (DSX) presently has a 14-day Commodity Channel Index (CCI) of 86.64. Typically, the CCI oscillates above and below a zero line. Normal oscillations tend to stay in the range of -100 to +100. A CCI reading of +100 may represent overbought conditions, while readings near -100 may indicate oversold territory. Although the CCI indicator was developed for commodities, it has become a popular tool for equity evaluation as well.
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