Colfax Corp (CFX) shares are on watch as the Elder Force line has moved above zero. The indicator was created by Alexander Elder in a book titled “Trading for a Living”. The scale fluctuates above and below zero, providing insight on the power of a stock movement based on direction and magnitude of volume. The indicator helps confirm price trends. The indicator visually shows when a strong shift in buying or selling momentum occurs. When the Force Index clings to the zero line, there is little momentum and traders may want to stay on the sidelines instead of initiating trades. A forceful rise above zero on the indicator shows strong buying pressure; when the indicator stays above zero it signifies an uptrend.
Investors might be searching far and wide for the next set of winning stocks to add to the portfolio. Many value investors may be on the lookout for stocks that are underpriced at current levels. Some investors may be looking for names that have the potential to see major growth in the next few years. Picking growth companies can be a bit riskier, but they may have much bigger potential for substantial returns. Other investors may be interested in finding companies that provide stable returns and pay out a solid dividend. Investors may even choose to piece together the portfolio with stocks from different categories. Having a diverse selection of stocks is typically recommended for longer-term portfolio health.
Checking on current RSI levels on shares of Colfax Corp (CFX), the 14-day RSI is currently standing at 69.38, the 7-day is at 79.39, and the 3-day is resting at 89.87. Relative Strength Index (RSI) is a frequently used technical analysis tool. RSI helps measure changes in price movement of a specific equity. RSI is a momentum oscillator that moves in a range from 0 to 100. RSI is generally used to interpret whether a stock is overbought or oversold. As a general rule, an RSI over 70 may indicate an overbought situation. On the other end of the spectrum, a reading under 30 may indicate an oversold situation.
Colfax Corp (CFX) currently has a 14-day Commodity Channel Index (CCI) of 169.43. Active investors may choose to use this technical indicator as a stock evaluation tool. Used as a coincident indicator, the CCI reading above +100 would reflect strong price action which may signal an uptrend. On the flip side, a reading below -100 may signal a downtrend reflecting weak price action. Using the CCI as a leading indicator, technical analysts may use a +100 reading as an overbought signal and a -100 reading as an oversold indicator, suggesting a trend reversal.
Shares of Colfax Corp (CFX) have a 200-day moving average of 34.37. The 50-day is 30.89, and the 7-day is sitting at 32.20. 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.
The Average Directional Index or ADX is 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. Currently, the 14-day ADX for Colfax Corp (CFX) is 22.60. 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 Williams Percent Range or Williams %R is another technical indicator that may be useful for traders and investors.
The Williams %R is designed to provide a general sense of when the equity might have reached an extreme and be primed for a reversal. As a general observance, the more overbought or oversold the reading displays, the more likely a reversal may take place. The 14 day Williams %R for Colfax Corp (CFX) is noted at -24.95. Many consider the equity oversold if the reading is below -80 and overbought if the indicator is between 0 and -20.
There are plenty of various strategies to employ when deciding which stocks to buy. These different strategies may be super simple or highly complex. Although there is no one plan that will magically create instant profits, having a plan in place will most likely benefit the investor immensely. One way to examine shares is by following fundamental data. Essentially, fundamental study involves viewing the health of a particular company by studying company financials. Many investors will closely study the balance sheet to see how profitable the company has been and try to figure out future performance. Investors may choose to compare companies that share the same sector in order to get a truer sense of how it stacks up to the competition.