Trading Snapshot: Ultimate Oscillator Over 60 on Shares of Riverfront Unconstrained Income ETF (RFUN)

After a recent market scan, we have seen that the Ultimate Oscillator reading is above 60 on shares of Riverfront Unconstrained Income ETF (RFUN). Technical analysts might be using the UO reading to spot overbought conditions.

Investors may be looking closely at current stock market levels as we move towards the closing stages of the year. Investors might be reviewing current holdings to see if there are any changes that need to be made. Even when things are going good with equities, it may be wise to regularly check the portfolio to make sure that everything is still balanced properly. Being prepared for various market conditions may be a great help to the investor when the winds of change eventually blow in.   

Shares of Riverfront Unconstrained Income ETF (RFUN) have a 200-day moving average of 24.90. The 50-day is 24.75, and the 7-day is sitting at 24.99. Using a bigger 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.

Currently, the 14-day ADX for Riverfront Unconstrained Income ETF (RFUN) is 17.24. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would signal a very strong trend, and a value of 75-100 would indicate an extremely strong trend. The Average Directional Index or ADX is a technical analysis indicator used to describe if a market is trending or not trending. The ADX alone measures trend strength but not direction. Using the ADX with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) may help determine the direction of the trend as well as the overall momentum. Many traders will use the ADX alongside other indicators in order to help spot proper trading entry/exit points.

Riverfront Unconstrained Income ETF (RFUN)’s Williams Percent Range or 14 day Williams %R is sitting at -17.65. 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.

When completing stock analysis, investors and traders may opt to review other technical levels. Riverfront Unconstrained Income ETF (RFUN) currently has a 14-day Commodity Channel Index (CCI) of 190.00. Investors and traders may use this indicator to help spot price reversals, price extremes, and the strength of a trend. Many investors will use the CCI in conjunction with other indicators when evaluating a trade. The CCI may be used to spot if a stock is entering overbought (+100) and oversold (-100) territory.

The RSI, or Relative Strength Index, is a commonly 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, the 14-day RSI is currently at 65.99, the 7-day stands at 71.20, and the 3-day is sitting at 84.45.

Traders may already have a favorite method for applying technical analysis. Active traders are typically concerned with shorter-term price movements when trading shares. Entry and exit points tend to be way more important for traders who are looking to capitalize on stock market trends. Some traders may opt to only use technical analysis when picking stocks, while others will also incorporate company fundamentals when doing research. Of course, there is no one foolproof method for trading the markets. Many technical investors will still opt to familiarize themselves with the fundamentals before diving deeper into the technical signals. Longer-term investors might not be as concerned with day to day price fluctuations while short-term traders may not want to miss out on any significant price swings. Whatever trading strategy is applied, investors may still want to try to get a sense of the overall picture before making the trade.