Trading Watch: Following the Technicals on Shares of Eaton Vance California Municipal Income Trust (CEV)

Checking on the signals, we have seen that Span A is presently lower than Span B for shares of Eaton Vance California Municipal Income Trust (CEV). Traders may be watching closely as this signal may indicate a possible bearish move.

Checking in on some other technical levels, the 14-day RSI is currently at 53.33, the 7-day stands at 57.82, and the 3-day is sitting at 70.89. Many investors look to the Relative Strength Index (RSI) reading of a particular stock to help identify overbought/oversold conditions. The RSI was developed by J. Welles Wilder in the late 1970’s. Wilder laid out the foundation for future technical analysts to further investigate the RSI and its relationship to underlying price movements. Since its inception, RSI has remained very popular with traders and investors. Other technical analysts have built upon the work of Wilder. The 14-day RSI is still a widely popular choice among technical stock analysts.

Investors have the ability to use technical indicators when completing stock research. At the time of writing, Eaton Vance California Municipal Income Trust (CEV) has a 14-day Commodity Channel Index (CCI) of 76.33. Developed by Donald Lambert, the CCI is a versatile tool that may be used to help spot an emerging trend or provide warning of extreme conditions. In terms of Moving Averages, the 7-day is resting at 12.64. Moving averages have the ability to be used as a powerful indicator for technical stock analysis.

Keeping an eye on Moving Averages, the 50-day is 12.62, the 200-day is at 12.47, and the 7-day is 12.64 for Eaton Vance California Municipal Income Trust (CEV). Moving averages have the ability to be used as a powerful indicator for technical stock analysis. Following multiple time frames using moving averages can help investors figure out where the stock has been and help determine where it may be possibly going. The simple moving average is a mathematical calculation that takes the average price (mean) for a given amount of time.

The Williams %R is designed to provide a general sense of when the equity might have reached an extreme and be primed for a reversal. As a general observance, the more overbought or oversold the reading displays, the more likely a reversal may take place. The 14 day Williams %R for Eaton Vance California Municipal Income Trust (CEV) is noted at -48.65. Many consider the equity oversold if the reading is below -80 and overbought if the indicator is between 0 and -20.

Currently, the 14-day ADX for Eaton Vance California Municipal Income Trust (CEV) is sitting at 21.46. 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.

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