Technical Spotlight: Tracking Shares of 5N Plus Inc (VNP.TO)

The Percentage Price Oscillator Histogram trend indicator is currently under zero on shares of 5N Plus Inc (VNP.TO). Active traders may be carefully tracking the indicator to see if the position is pointing to the stock as a sell.

With the stock market continuing to move higher, investors may be searching for stocks that are still fairly undervalued. This may involve doing a little bit more homework than usual. Spotting those names that have been cast aside and not garnering much recent attention might be a good place to start. Putting in a few extra hours of stock research may provide some good options for buying on the next big dip. Of course, nobody can say for sure how long the markets will continue to climb. Being ready for a pullback can help if investors already have some names in mind that they are looking to scoop up when they fall to a certain level. Tracking the technicals and staying up on the fundamentals should help investors hone in on the next wave of stocks to add to the portfolio.

After a recent technical review, shares of 5N Plus Inc (VNP.TO) have a 200-day moving average of 3.20. The 50-day is 2.96, and the 7-day is sitting at 3.01. Using a wider time frame to assess the moving average such as the 200-day, may help block out the noise and chaos that is often caused by daily price fluctuations. In some cases, MA’s may be used as strong reference points for spotting support and resistance levels. Employing the use of the moving average for technical equity analysis is still highly popular among traders and investors. The moving average can be used as a reference point to assist with the discovery of buying and selling opportunities.

Presently, 5N Plus Inc (VNP.TO) has a 14-day Commodity Channel Index (CCI) of -42.12. The CCI technical indicator can be used to help determine if a stock is overbought or oversold. CCI may also be used to help discover divergences that could possibly signal reversal moves. A CCI closer to +100 may provide an overbought signal, and a CCI near -100 may offer an oversold signal.

Technical traders often make a point of keeping an eye on the ATR or Average True Range of a particular equity. Currently, 5N Plus Inc (VNP.TO) has a 14-day ATR of 0.11. 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.

5N Plus Inc (VNP.TO)’s Williams Percent Range or 14 day Williams %R presently is at -45.45. 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 do some further technical analysis on the stock. At the time of writing, the 14-day ADX for 5N Plus Inc (VNP.TO) is 26.19. 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.

Investors often have to make the decision of how aggressive they are going to invest. Some investors looking to make a quick dollar may jump in head first without a plan. This can be dangerous for the health of the portfolio in the long-term. Taking a chance on a risky stock may provide high returns, but investors often need to calculate whether the risk is worth the reward. Managing that risk in turbulent markets may help keep the average investor afloat when the markets inevitably turn sour for an extended period. Doing all the necessary stock research may include keeping a close tab on technicals, fundamentals, relevant economic data, and earnings reports. Investors may have to find a way to keep the rational side from being consumed by irrational behavior when studying the markets.