Carving Out The Technicals For Sareum Holdings Plc (SAR.L)

The DAX managed a slight gain of 0.20%, while the FTSE 100 was underperforming after strong labor market data lifted yields. The index has lifted off lows, but remains down 0.42% on the day. 

Stocks were struggling going into the Federal Reserve announcement, with markets still split on the risk of an accelerated rate path. US stock futures were moving sideways. 

Asian markets initially moved higher, as energy related stocks got a boost from higher oil prices, but Hang Seng and CSI 300 lost earlier gains later in the session and closed with losses of 0.43% and 0.41%, respectively. Japan was closed for a holiday.

Tracking shares of Sareum Holdings Plc (SAR.L), we have seen that the Chaikin Oscillator reading is currently below zero. Traders following the stock may be on the lookout for possible bearish momentum.

Investors may be trying to get a read on the next big stock market move. Projecting which stocks are ready to make a run can be tricky. Many investors will track the market from various angles in order to make the best educated decisions. Keeping tabs on all the important economic indicators can help when analyzing the overall health of the stock market. Some financial strategists may be projecting a sharp downturn over the next few months while others believe that there is no tangible reason for the market to lose the near-term momentum.

Sareum Holdings Plc (SAR.L) currently has a 14-day Commodity Channel Index (CCI) of -32.66. Dedicated 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 Sareum Holdings Plc (SAR.L) is sitting at 26.28. 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.

Tracking other technical indicators, the 14-day RSI is presently standing at 47.23, the 7-day sits at 47.42, and the 3-day is resting at 42.06 for Sareum Holdings Plc (SAR.L). The Relative Strength Index (RSI) is an often employed momentum oscillator that is used to measure the speed and change of stock price movements. When charted, the RSI can serve as a visual means to monitor historical and current strength or weakness in a certain market. This measurement is based on closing prices over a specific period of time. As a momentum oscillator, the RSI operates in a set range. This range falls on a scale between 0 and 100. If the RSI is closer to 100, this may indicate a period of stronger momentum. On the flip side, an RSI near 0 may signal weaker momentum. The RSI was originally created by J. Welles Wilder which was introduced in his 1978 book “New Concepts in Technical Trading Systems”.

Taking a peek at some Moving Averages, the 200-day is at 0.74, the 50-day is 0.59, and the 7-day is sitting at 0.55. The moving average is a popular tool among technical stock analysts. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a specific period of time. Moving averages can be very useful for identifying peaks and troughs. They may also be used to help the trader figure out proper support and resistance levels for the stock.

Sareum Holdings Plc (SAR.L)’s Williams Percent Range or 14 day Williams %R presently is at -62.20. In general, if the reading goes above -20, the stock may be considered to be overbought. Alternately, if the indicator goes under -80, this may show the stock as being oversold. The Williams %R indicator helps show the relative situation of the current price close to the period being observed.

As the next company earnings season comes into focus, investors may be closely following the numbers as they are released. Some investors will choose to stay away from any big trades during earnings season. Others will opt to try to capitalize on stock price fluctuations that may occur before and after the earnings report. Wall Street analysts may be getting ready to make estimate revisions over the next couple of weeks. Investors have the ability to follow analyst estimates and recommendations when undertaking stock analysis. Investors may choose to review analyst projections and then make their own decisions on what they think the company will report for the quarter.