Indicator Watch: Wilder Moving Average is Above SMA on Shares of Atrum Coal Limited (ATUO.AX)

Monitoring the numbers on shares of Atrum Coal Limited (ATUO.AX), we have noted that the 21 day Wilder Moving Average is currently above the 50 day SMA . With this reading, traders may be looking for a potentially strong near-term trend.

After an investor has figured out their financial and investment goals, they may be interested in designing a specific stock portfolio that will serve those goals and help create and sustain profits well into the future. There is an overwhelming amount of information available on creating winning stock portfolios. Some strategies will work well for certain individuals, and some strategies will not. Understanding the challenges that are involved with creating the perfect portfolio may help the investor ascertain how much time is needed to properly manage the portfolio. Some investors will want to be hands on and do everything. Others will seek and employ the expertise of industry professionals. 

Technical traders often make a point of keeping an eye on the ATR or Average True Range of a particular equity. Currently, Atrum Coal Limited (ATUO.AX) has a 14-day ATR of 0.01. The Average True Range is an investor tool used to measure stock volatility. The ATR is not used to figure out price direction, just to measure volatility. The ATR is an indicator developed by J. Welles Wilder. Wilder has developed multiple indicators that are still quite popular in today’s investing landscape. The general interpretation of the ATR is the higher the ATR value, the higher the volatility.

Some investors may find the Williams Percent Range or Williams %R as a helpful technical indicator. Presently, Atrum Coal Limited (ATUO.AX)’s Williams Percent Range or 14 day Williams %R is resting at -29.85. Values can range from 0 to -100. A reading between -80 to -100 may be typically viewed as strong oversold territory. A value between 0 to -20 would represent a strong overbought condition. As a momentum indicator, the Williams R% may be used with other technicals to help define a specific trend.

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. Currently, the 7-day moving average is sitting at 0.05.

The 14-day ADX for Atrum Coal Limited (ATUO.AX) is standing at 54.03. Many chart analysts believe that an ADX reading over 25 would suggest a strong trend. A reading under 20 would suggest no trend, and a reading from 20-25 would suggest that there is no clear trend signal.

The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of stock price movements. The RSI was developed by J. Welles Wilder, and it oscillates between 0 and 100. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70. RSI can be used to detect general trends as well as finding divergences and failure swings. The 14-day RSI is currently at 70.30, the 7-day stands at 70.06, and the 3-day is sitting at 68.68.

When putting hard earned money at risk, investors will want to look at all the angles in order to make sure that no stone is left unturned when building the stock portfolio. With so many different stocks available to trade, investors may need to figure out a way to make the selection process manageable. Some investors may choose to start with industry research first and eventually filter down to individual stock picks. Others may want to start at the individual stock level and go from there. Whatever the approach the investor chooses, putting in the time and effort might greatly help the long-term performance of the stock portfolio.