Tale of the Ticker: ETFS Commodity Securities Limited (LBRT.L) Move -1.09% on Volume

Shares of ETFS Commodity Securities Limited (LBRT.L) have seen the needle move -1.09% or -0.54 in the most recent session. The LSE listed company saw a recent bid of $48.90 on 206 volume. 

Investors may already be plotting the course for the next few quarters. Many investing decisions may need to be made after the next round of company earnings reports are released. Studying the numbers can help the investor see whether or not the stock’s prospects look good in the near term as well as the longer term. It remains to be seen whether optimism in the stock market will continue into the next year. Investors will closely be monitoring the major economic data reports over the next couple of months. While nobody can be sure which way the momentum will shift, preparing for multiple market scenarios may greatly help the investor if changes start to occur.     

Taking a deeper look into the technical levels of ETFS Commodity Securities Limited (LBRT.L), we can see that the Williams Percent Range or 14 day Williams %R currently sits at -49.63. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would point to an overbought situation. A reading from -80 to -100 would signal an oversold situation. The Williams %R was developed by Larry Williams. This is a momentum indicator that is the inverse of the Fast Stochastic Oscillator.

Currently, the 14-day ADX for ETFS Commodity Securities Limited (LBRT.L) is sitting at 13.99. 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.

For further review, we can take a look at another popular technical indicator. In terms of moving averages, the 200-day is currently at 66.60, the 50-day is 47.00, and the 7-day is resting at 49.38. Moving averages are a popular trading tool among investors. Moving averages can be used to help filter out the day to day noise created by other factors. MA’s may be used to identify uptrends or downtrends, and they can be a prominent indicator for detecting a shift in momentum for a particular stock. Many traders will use moving averages for different periods of time in conjunction with other indicators to help gauge future stock price action.

ETFS Commodity Securities Limited (LBRT.L) currently has a 14-day Commodity Channel Index (CCI) of -3.61. Active investors may choose to use this technical indicator as a stock evaluation tool. Used as a coincident indicator, the CCI reading above +100 would reflect strong price action which may signal an uptrend. On the flip side, a reading below -100 may signal a downtrend reflecting weak price action. Using the CCI as a leading indicator, technical analysts may use a +100 reading as an overbought signal and a -100 reading as an oversold indicator, suggesting a trend reversal.

The RSI, or Relative Strength Index, is a widely used technical momentum indicator that compares price movement over time. The RSI was created by J. Welles Wilder who was striving to measure whether or not a stock was overbought or oversold. The RSI may be useful for spotting abnormal price activity and volatility. The RSI oscillates on a scale from 0 to 100. The normal reading of a stock will fall in the range of 30 to 70. A reading over 70 would indicate that the stock is overbought, and possibly overvalued. A reading under 30 may indicate that the stock is oversold, and possibly undervalued. After a recent check, ETFS Commodity Securities Limited’s  14-day RSI is currently at 51.29, the 7-day stands at 51.07, and the 3-day is sitting at 45.05.

Learning to secure profits from trading the stock market can involve a lot of diligent work and focus. The more experienced a trader becomes, they may be find it easier to follow good trading techniques. Having a plan may be one of the most important aspects for trading the equity market. Without a plan, traders may find themselves in a bind when faced with difficult real world decisions. When these decisions have a direct impact on profits and losses, traders need to be able to make sure that they make the best possible moves in order to avoid disaster.