Investors tracking shares of Source Markets Public Limited Company (XRES.L) may have taken notice that the stock has risen 3.84% over the last 4 weeks. Tracking back over the last half-year, shares have seen a change of 17.28%. Looking out over the past 52-weeks, shares have moved 26.77%. Watching the last 5 trading periods, shares have changed 1.91%.
Stock market triumph can be just as much about learning how to minimize losses as it is about picking winning stocks. Not even the most seasoned professional investors are right all the time. Successful investors know how to act quickly and protect themselves from big losses. Sometimes those sure-fire stock picks don’t perform as planned. Being able to detach from any emotion that one might have to a certain stock can help with being able to cut and run when the time is right. Investors will often try to convince themselves that the research was correct and the stock will bounce back, but this can lead to extended losses and future portfolio disaster. Sometimes markets or individual stocks will move in a direction that nobody expected. Being able to take a punch and move on is what may keep investors from experiencing quick defeat in the stock market.
Traders may be focusing in on the ATR or Average True Range indicator when performing stock analysis. At the time of writing, Source Markets Public Limited Company (XRES.L) has a 14-day ATR of 0.15. The average true range indicator was developed by J. Welles Wilder in order to measure volatility. The ATR may assist traders with figuring out the strength of a breakout or reversal in price. It is important to note that the ATR was not designed to determine price direction or to predict future prices.
We can also take a look at the Average Directional Index or ADX of the stock. For traders looking to capitalize on trends, the ADX may be an essential technical tool. The ADX is used to measure trend strength. ADX calculations are made based on the moving average price range expansion over a specified amount of time. ADX is charted as a line with values ranging from 0 to 100. The indicator is non-directional meaning that it gauges trend strength whether the stock price is trending higher or lower. The 14-day ADX for Source Markets Public Limited Company (XRES.L) presently sits at 21.74. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would indicate a very strong trend, and a value of 75-100 would signify an extremely strong trend.
Taking a closer look from a technical standpoint, Source Markets Public Limited Company (XRES.L) presently has a 14-day Commodity Channel Index (CCI) of 105.94. 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.
A commonly 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 identifying peaks and troughs. They may also be used to assist the trader figure out proper support and resistance levels for the stock. Currently, the 200-day MA for Source Markets Public Limited Company (XRES.L) is sitting at 16.56.
When it comes to investing, overconfidence can be detrimental to securing profits in the stock market. When investors have some early short-term wins, this may lead them to believe that it is their skill and superior knowledge that produced the winners. All though this may occasionally be the case, investors may quickly realize that it is very hard to consistently produce winning results. Sometimes a few wins can lead the investor to believe that they can make any trade work. This may create a situation where the individual gets in much deeper than they should have. Conducting the proper stock research before any trade can help the investor make sure that they are getting into a position for the right reasons.
The Williams Percent Range or Williams %R is a technical indicator worth taking a look at. Source Markets Public Limited Company (XRES.L) currently has a 14 day Williams %R of -1.25. The Williams %R fluctuates between 0 and -100 measuring whether a security is overbought or oversold. The Williams %R is similar to the Stochastic Oscillator except it is plotted upside-down. Levels above -20 may indicate the stock may be considered is overbought. If the indicator travels under -80, this may signal that the stock is oversold. Chart analysts may also use the indicator to project possible price reversals and to define trends.