After a recent look, Morneau Shepell Inc. (MSI.TO) has a 50-day Moving Average of 19.03, the 200-day Moving Average is 17.17, and the 7-day is noted at 20.08. 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 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.
Traders may be relying in part on technical stock analysis. Morneau Shepell Inc. (MSI.TO) currently has a 14-day Commodity Channel Index (CCI) of 41. Despite the name, CCI can be used on other investment tools such as stocks. The CCI was designed to typically stay within the reading of -100 to +100. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction. On the other hand, a reading of -100 would imply that the stock is oversold and possibly set for a rally.
Let’s do some further technical analysis on the stock. At the time of writing, the 14-day ADX for Morneau Shepell Inc. (MSI.TO) is 43.37. Many technical chart analysts believe that an ADX value over 25 would suggest a strong trend. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal. The ADX is typically plotted along with two other directional movement indicator lines, the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI). Some analysts believe that the ADX is one of the best trend strength indicators available.
Another technical indicator to examine is the Williams Percent Range or Williams %R. Developed by Larry Williams, this indicator helps spot overbought and oversold market conditions. The Williams %R shows how the current closing price compares to previous highs/lows over a specified period. Morneau Shepell Inc. (MSI.TO)’s Williams Percent Range or 14 day Williams %R is sitting at -43.08. Typically, if the value heads above -20, the stock may be considered to be overbought. On the flip side, if the indicator goes under -80, this may signal that the stock is oversold.
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. The 14-day RSI is currently sitting at 60.68, the 7-day is at 56.44, and the 3-day is spotted at 37.25.