Vinacapital Vietnam Opportunity Fund Ld (VOF.L) SMI Reading Painting a New Picture

The Stochastic Momentum Index (SMI) for Vinacapital Vietnam Opportunity Fund Ld (VOF.L) has pinging above +40, reaching key levels.  The most common method of using SMI is to look for buy trades when the SMI falls under -40 and then rises back above through -40.  Sell trades are looked for when the SMI rises above +40 and then falls back below +40.  The SMI is considered a refinement of the stochastic oscillator. It calculates the distance of the current closing price as it relates to the median of the high/low range of price. William Blau developed the SMI in an attempt to provide a more reliable indicator, less subject to false swings.

Individual investors are constantly hearing about the next hot stock to buy. Acting purely on these types of tips can be hazardous to the portfolio if the research is not completed. Sometimes these stock tips will pan out and be correct, other times they can leave the investor wondering why they acted on the speculative advice. Even if a stock tip is correct, the results may have already been manifested and the investor would simply be getting in way too late. Knowing what information is reliable can drastically improve the chances of making smarter stock picks. Even the most praised stocks may not be able to withstand an overall market downturn.    

Traders are taking a closer look at shares of Vinacapital Vietnam Opportunity Fund Ld (VOF.L) of late. The 14-day RSI is presently at 67.05, the 7-day is at 82.22, and the 3-day is resting at 96.57. The Relative Strength Index (RSI) is one of various popular technical indicators developed by J. Welles Wilder. Wilder introduced RSI in his publication “New Concepts in Technical Trading Systems” which was released 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.

In terms of CCI levels, Vinacapital Vietnam Opportunity Fund Ld (VOF.L) currently has a 14-day Commodity Channel Index (CCI) of 211.86. 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 14-day ADX is 23.26. Many technical chart analysts believe that an ADX reading over 25 would suggest a strong trend. A level 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 may be studying other technical indicators like the Williams Percent Range or Williams %R. The Williams %R is a momentum indicator that helps measure oversold and overbought levels. This indicator compares the closing price of a stock in relation to the highs and lows over a certain time period. A common look back period is 14 days. Vinacapital Vietnam Opportunity Fund Ld (VOF.L)’s Williams %R presently stands at -5.88. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would indicate an overbought situation. A reading from -80 to -100 would indicate an oversold situation. Looking at some moving average levels, the 200-day is at 332.18, the 50-day is 330.98, and the 7-day is sitting at 329.43. Moving averages can help identify trends and price reversals. They may also be used to help spot support and resistance levels. Moving averages are considered to be lagging indicators meaning that they confirm trends. A certain stock may be considered to be on an uptrend if trading above a moving average and the average is sloping upward. On the other side, a stock may be considered to be in a downtrend if trading below the moving average and sloping downward.

Investors may be looking into the crystal ball trying to calculate where the equity market will be shifting as we move into the second half of the year. Investors may be hard pressed to find bargains with the markets still riding high. Sometimes, keeping it simple may be exactly what the doctor ordered when approaching the markets. Focusing on relevant data instead of information that breezes through may make a huge difference for the individual investor. Focusing on companies that have strong competitive advantages may help fight off unwelcome surprises that often come with uncertain economic landscapes. Focusing on the long-term might be right for some investors. Developing a good safety margin may also help keep the important investing factors in focus. Covering all the bases may help increase the odds of success when trading equities.