Denso Corp Ltd Ord (DNZOF) shares have popped up on the radar as the RMI or Relative Momentum Indicator has trended higher over the past 5 sessions. As the momentum builds, we will be closely watching to see if they cross into Overbought territory.
The Relative Momentum Index is calculated as the ratio of average upward price changes to the average absolute price change. The index requires two parameters. The first parameter is the number of periods used to determine price change. The second parameter is the number of periods to average these changes over. The permissible values for RMI lie in the range between 0 and 100. Whilst a crossing of the center line may be interpreted as a warning of an impending trend change, only values over 70 are usually regarded as a buy signal and those below 30 as a sell signal.
Crossing over to look at some additional metrics, we note that Denso Corp Ltd Ord (DNZOF) currently has a 50-day moving average of 51.55, the 200-day is at 42.83, and the 7-day is 57.66. In the investing realm, using the moving average for technical equity analysis is still very popular among traders and investors. The moving average can be used as a reference point to help discover buying and selling opportunities. Using a longer term moving average such as the 200-day may help block out the noise and chaos that is sometimes created by daily price fluctuations. In some cases, MA’s may be used as strong reference points for finding support and resistance levels.
Denso Corp Ltd Ord (DNZOF)’s Williams Percent Range or 14 day Williams %R currently sits at -22.74. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would point to an overbought situation. A reading from -80 to -100 would signal an oversold situation. The Williams %R was developed by Larry Williams. This is a momentum indicator that is the inverse of the Fast Stochastic Oscillator.
Denso Corp Ltd Ord (DNZOF) currently has a 14-day Commodity Channel Index (CCI) of 336.44. Active investors may choose to use this technical indicator as a stock evaluation tool. Used as a coincident indicator, the CCI reading above +100 would reflect strong price action which may signal an uptrend. On the flip side, a reading below -100 may signal a downtrend reflecting weak price action. Using the CCI as a leading indicator, technical analysts may use a +100 reading as an overbought signal and a -100 reading as an oversold indicator, suggesting a trend reversal.
Currently, the 14-day ADX for Denso Corp Ltd Ord (DNZOF) is sitting at 41.77. 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.
The RSI, or Relative Strength Index, is a widely 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. After a recent check, the 14-day RSI is currently at 81.79, the 7-day stands at 91.46, and the 3-day is sitting at 99.67.