Trading Monitor: Miller`s Retail Ltd (MRL.AX) Stock Topping Chikou Line

At current levels, Miller`s Retail Ltd (MRL.AX) is trading on top of the Chikou. If the stock continues to stay above the line, traders might be anticipating a possible upward momentum swing.

When it comes to investing in the stock market, there are many different styles and strategies that can be used. Some investors will want to do all the work themselves to try to adopt a specific plan all their own. Others will attempt to replicate strategies that have worked for others in the past. Of course, there is no sure bet strategy that will produce instant investing success. Taking the time to study all the different investing methods may be useful for some, but not as helpful for others. What worked in the past may not work again in the future. Investors will often need to decide how much risk they are willing to take on when investing in stocks. Once the risk appetite is figured out, they may want to decide how much and how aggressive they want to invest.

Technical analysts have been monitoring shares of Miller`s Retail Ltd (MRL.AX) as of late. 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. Presently, the 14-day RSI is standing at 36.70, the 7-day is 37.14, and the 3-day is resting at 46.08.

Taking a look at the numbers, Miller`s Retail Ltd (MRL.AX) has a 14-day Commodity Channel Index (CCI) of -114.13. 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.

Currently, the 14-day ADX for Miller`s Retail Ltd (MRL.AX) is sitting at 53.36. 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.

Checking in on moving averages, the 200-day is at 0.70, the 50-day is 0.65, and the 7-day is sitting at 0.61. Moving averages may be used by investors and traders to shed some light on trading patterns for a specific stock. Moving averages can be used to help smooth information in order to provide a clearer picture of what is going on with the stock. Technical stock analysts may use a combination of different time periods in order to figure out the history of the equity and where it may be headed in the future. MA’s can be calculated for any time period, but two very popular time frames are the 50-day and 200-day moving averages.

As we move closer towards the end of the year, investors might be looking over the portfolio and trying to see what has been working and what hasn’t been. Investors may be studying the most recent earnings reports of stocks they own in order to make sure that everything is still in order. Active investors might be double checking the portfolio to make sure that it is properly diversified. There might be a few adjustments that need to be made in order to keep the holdings balanced. Of course, nobody can say for sure which way the momentum will shift over the next couple of quarters, but being prepared for any situation is generally considered to be a good idea.