The Awesome Oscillator for Chester Bancorp Inc. (CNBA) is showing a five day consistent uptrend, signaling building market momentum for the shares. Author and trader Bill Williams created The Awesome Oscillator Indicator (AO) and outlined the theory and calculation in his book “New Trading Dimensions”. The indicator shows the difference between two simple moving averages that can help define moving strength of the market. Bill Williams developed this indicator on the basis of earlier existed MACD and made a number of changes. The Awesome Oscillator subtracts a 34 period simple moving average (SMA) from a 5 period SMA. It illustrates what’s happening to the market driving force at the present moment. The interpretation is similar to MACD including buying when the oscillator crosses through the zero line to the upside and selling when it crosses back below. Of course, this will result is many false signals in flat or choppy markets. As with most indicators, the AO is best used alongside additional technical signals.
Many technical traders will be taking a look at different indicators to help figure out where shares may be heading. At the time of writing, Chester Bancorp Inc. (CNBA) has a 14-day Commodity Channel Index (CCI) of 21.32. Although the indicator uses the term commodity, CCI can be translated to use on other investment tools such as stocks. The CCI was developed to typically stay within the -100 to +100 levels. Traders may employ the indicator to determine stock trends or to identify if a stock is trading in overbought/oversold territory. A CCI reading above +100 would imply that the stock is overbought and possibly set for a correction. On the other side, a reading of -100 would imply that the stock is oversold and possibly set for a rally.
A popular tool among technical stock analysts is the moving average. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a certain period of time. They may also be used to assist the trader figure out proper support and resistance levels for the stock. Currently, Chester Bancorp Inc. (CNBA) has a 200-day MA of 18.26, and a 50-day of 18.31. Presently, the stock has a 14-day RSI of 54.50, the 7-day is sitting at 53.23, and the 3-day is resting at 51.07. The Relative Strength Index (RSI) is one of multiple popular technical indicators created by J. Welles Wilder. Wilder introduced RSI in his book “New Concepts in Technical Trading Systems” which was published in 1978. RSI measures the magnitude and velocity of directional price movements. The data is represented graphically by fluctuating between a value of 0 and 100. The indicator is computed by using the average losses and gains of a stock over a certain time period. RSI can be used to help spot overbought or oversold conditions. An RSI reading over 70 would be considered overbought, and a reading under 30 would indicate oversold conditions. A level of 50 would indicate neutral market momentum.
Chester Bancorp Inc. (CNBA)’s Williams Percent Range or 14 day Williams %R presently is at -52.63. 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. We can also take a look at the Average Directional Index or ADX of the stock. For traders looking to capitalize on trends, the ADX may be an essential technical tool. The ADX is used to measure trend strength. ADX calculations are made based on the moving average price range expansion over a specified amount of time. ADX is charted as a line with values ranging from 0 to 100. The indicator is non-directional meaning that it gauges trend strength whether the stock price is trending higher or lower. The 14-day ADX presently sits at 23.70. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would indicate a very strong trend, and a value of 75-100 would signify an extremely strong trend.