Mustang Group (MUS.AX) Elder Force Creeps Above Zero

Shares of Mustang Group (MUS.AX) are being monitored closely as they have moved above the Elder Force zero line.  Elder’s Force Index (or EFI) uses volume and price change from previous close to determine the momentum behind a price move in a given direction. An increasing Force Index is indicative of strong interest in the direction of the price move while a decreasing Force Index suggests that price is moving counter to the major trend. It is calculated by exponentially smoothing the product of volume and the difference in price from previous close to current close. Values above 0 indicate a current buying trend, while values below 0 indicate a selling trend. The Force Index uses both the change in closing prices and volume in its calculation.

Traders have been closely following shares of Mustang Group (MUS.AX) recently. Focusing on moving averages, the 50-day is 0.03, the 200-day is at 0.05, and the 7-day is 0.03. Using the moving average for technical stock analysis is still quite popular among traders and investors. The moving average can be used as a reference point to help spot buying and selling opportunities. Using a longer term moving average such as the 200-day may help squash 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 figuring out support and resistance levels.

Mustang Group (MUS.AX)’s Williams Percent Range or 14 day Williams %R currently sits at -16.67. 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.

Mustang Group (MUS.AX) currently has a 14-day Commodity Channel Index (CCI) of 200.00. 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 Mustang Group (MUS.AX) is sitting at 20.02. 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 63.31, the 7-day stands at 78.66, and the 3-day is sitting at 94.10.

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