A potential trend reversal has be noted for Corero Network Security Plc. (OTC:$CRREF), based on its closing price of $8.25 touching just above its Parabolic SAR reading.
Parabolic SAR is an indicator that takes into account additional trends and factors, but is rarely used as a standalone factor. It is a good idea to use the PSAR in conjunction with other indicators since the PSAR is price and time based and therefore not very adept at measuring the actual strength of a trend.
Another tool we can use is the ATR. Developed by J.Welles Wilder, the ATR measures interest in trends and can detect early signs of a reversal. In layman’s terms, the ATR determines volatility of a stock over any period of time. Currently, Corero has a 14 day ATR of 0.93.
The Relative Strength Index is used to measure if a stock is oversold or overbought, ranging from 0 to 100. A rating of 70+ indicates a stock is overbought, whereas a rating of 30- would indicate the opposite. The immensely popular tool can be used over multiple time spans as well. Corero currently has a 3 day RSI of 20.34, a 7 day RSI of 20.59, and a 14 day RSI of 29.60.
We can also look at the Average Directional Index. The ADX is often used in conjunction with the Plus Directional Indicator and the Minus Directional Indicator to spot trend direction and strength. Ratings of 0-20 indicate no trend, 20-25 indicate no clear trend, and 25+ indicate trends of increasing strength. Corero currently holds a 14 day ADX of 43.03.
The Williams Percentage Range or Williams %R can also be a useful tool for measuring overbought and oversold situations. The indicator oscillates from 0 to -100, with numbers above -20 indicating an overbought stock and numbers below -80 indicating an oversold stock. This tool is mostly used to chart possible reversals and to define trends. Corero currently has a 14 day Williams %R of 0.00.
Finally, we can look at the Commodity Channel Index. Originally developed to monitor commodity prices, the CCI can be used to indicate trends or overbought/oversold situations. The indicator oscillates from -100 to +100, with the former indicating a downtrend and weakening price action and the latter indicating an uptrend and strengthening price action. Corero currently holds a 14 day CCI of -31.91.
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