Monitoring the numbers for Aptus Behavioral Momentum ETF (BEMO), we are noting that the KAMA is trending up over the last five days. Tracking this reading, traders might be on the lookout for positive near-term momentum.
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 is sitting at 27.73.
Investors may be watching technical indicators such as the Williams Percent Range or Williams %R. Aptus Behavioral Momentum ETF (BEMO)’s Williams %R presently stands at -21.01. 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. 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.
Checking in on some other technical levels, the 14-day RSI is currently at 69.12, the 7-day stands at 67.54, and the 3-day is sitting at 67.09. The RSI, or Relative Strength Index, is a commonly 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.
We can also do some further technical analysis on the stock. At the time of writing, the 14-day ADX for Aptus Behavioral Momentum ETF (BEMO) is 45.34. Many technical chart analysts believe that an ADX value over 25 would suggest a strong trend. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal. The ADX is typically plotted along with two other directional movement indicator lines, the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI). Some analysts believe that the ADX is one of the best trend strength indicators available.
Technical traders have a large inventory of technical indicators they may use when doing technical stock analysis. After a recent look, the 14-day ATR for Aptus Behavioral Momentum ETF (BEMO) is resting at 0.21. First developed by J. Welles Wilder, the ATR may help traders in determining if there is heightened interest in a trend, or if extreme levels may be indicating a reversal. Simply put, the ATR determines the volatility of a security over a given period of time, or the tendency of the security to move one direction or another.