Banco Products (I) Limited (BANCOINDIA.NS) moved -3.85% in the most recent session, touching a recent bid of 219.20. Current price levels place the shares above the rising trendline.
A principle of technical analysis is that once a trend has been formed (two or more peaks/troughs have touched the trendline and reversed direction) it will remain intact until broken. That sounds much more simplistic than it is! The goal is to analyze the current trend using trendlines and then either invest with the current trend until the trendline is broken, or wait for the trendline to be broken and then invest with the new (opposite) trend.
One of the basic tenets put forth by Charles Dow in the Dow Theory is that security prices do trend. Trends are often measured and identified by “trendlines.” A trendline is a sloping line that is drawn between two or more prominent points on a chart. Rising trends are defined by a trendline that is drawn between two or more troughs (low points) to identify price support. Falling trend-s are defined by trendlines that are drawn between two or more peaks (high points) to identify price resistance.
Taking a glance from a technical standpoint, Banco Products (I) Limited (BANCOINDIA.NS) presently has a 14-day Commodity Channel Index (CCI) of 118.89. 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.
The 14-day ADX for Banco Products (I) Limited (BANCOINDIA.NS) is currently sitting at 16.77. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would signal a very strong trend, and a value of 75-100 would indicate an extremely strong trend. The ADX is a technical indicator developed by J. Welles Wilder used to determine the strength of a trend. The ADX is often used along with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of the trend.
Moving average indicators are used widely for stock analysis. Many traders will use a combination of moving averages with different time frames to help review stock trend direction. One of the more popular combinations is to use the 50-day and 200-day moving averages. Investors may use the 200-day MA to help smooth out the data a get a clearer long-term picture. They may look to the 50-day or 20-day to get a better grasp of what is going on with the stock in the near-term. Narrowing in on Moving Averages, the 200-day for Banco Products (I) Limited (BANCOINDIA.NS) is at 213.87, the 50-day is 215.38, and the 7-day is resting at 218.95. The RSI is computed based on the speed and direction of a stock’s price movement. The RSI is considered to be an internal strength indicator, not to be confused with relative strength which is compared to other stocks and indices. The RSI value will always move between 0 and 100. One of the most popular time frames using RSI is the 14-day. The 14-day RSI is presently standing at 52.95, the 7-day sits at 52.84, and the 3-day is resting at 50.46.
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. Banco Products (I) Limited (BANCOINDIA.NS)’s Williams %R presently stands at -51.44. 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.