Trading View: Minus DI Higher Than Plus DI on Shares of Lands` End Inc (LE)

Many individuals strive to expand their wealth by investing in the stock market. There are countless factors that come in to play when analyzing which stocks to invest in. Along with all the tangible information provided by publically traded companies, there are plenty of intangibles. It is fairly easy to comb through the balance sheet to find out detailed performance numbers, but it can be extremely difficult to measure other aspects such as competitive advantage, reputation, and leadership competency. Sometimes all the rational calculations will point to a buy, but there may be other influences that may not support the case and will need to be addressed. Investors who are willing to go the extra mile when conducting stock research may find that crucial decisions become a little bit less strenuous down the road.

Following a recent market check, we have noticed that the -Directional Indicator is above the +Directional Indicator on shares of Lands` End Inc (LE). Technical traders may be watching this reading to identify bearish momentum on the stock.

One way to completely avoid market mistakes is to not invest at all. Of course, that could end up to be the greatest mistake of all. Investors will occasionally make some mistakes, as that comes with the territory. The key as with most things in life is to figure out how to learn from past mistakes and use that knowledge to make better decisions going forward. Pinpointing exactly what went wrong may help shed some light on what needs improvement. Sometimes, investors will suffer losses and become discouraged right out of the gate. The tendency is to then try to recoup losses by taking even bigger risks which can lead to complete disaster. One of the biggest differences between successful investors and failed investors is the willingness and ability to learn from past personal mistakes.

Taking a closer look from a technical standpoint, Lands` End Inc (LE) presently has a 14-day Commodity Channel Index (CCI) of -89.12. Typically, the CCI oscillates above and below a zero line. Normal oscillations tend to stay in the range of -100 to +100. A CCI reading of +100 may represent overbought conditions, while readings near -100 may indicate oversold territory. Although the CCI indicator was developed for commodities, it has become a popular tool for equity evaluation as well.

Checking in on some other technical levels, the 14-day RSI is currently at 45.09, the 7-day stands at 34.89, and the 3-day is sitting at 21.05. 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.

Some investors may find the Williams Percent Range or Williams %R as a helpful technical indicator. Presently, Lands` End Inc (LE)’s Williams Percent Range or 14 day Williams %R is resting at -89.30. 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.

A widely used tool among technical stock analysts is the moving average. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a certain period of time. Moving averages can be very helpful for spotting peaks and troughs. They may also be used to help the trader figure out reliable support and resistance levels for the stock. Currently, the 200-day MA is sitting at 19.89.

The 14-day ADX for Lands` End Inc (LE) is currently at 15.50. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would signify a very strong trend, and a value of 75-100 would point to an extremely strong trend.

With the stock market trading at current levels, investors may be tossing around ideas about how to trade the next few quarters. As we slip further into the second half of the year, investors may be assessing the latest earnings reports and trying to calculate the future prospects of certain stocks. Finding bargain stocks at current levels may be much harder than spotting hidden gems when markets are down. Plowing through the fundamentals may help sort out some of the questions that investors may have that come along with trading at these levels. Investors may have to do a little more homework in order to identify that next great trade, but the rewards may be well worth the extra time and effort.