Bioanalytical Syst (BASI) are in focus today as the charts are revealing that the Mesa Adaptive Moving Average (MAMA) is holding steady above the FAMA, or Fractional Moving Average.  This environment typically indicates that there might be a buying opportunity aligning in technicals.  When there are crossovers between the FAMA and MAMA, the shares are often widely traded.  When the MAMA crosses above the FAMA, it means that the shares are likely to move higher.  Conversely the opposite occurs when the MAMA crosses below the FAMA.  The Mesa Moving Average was first mentioned by John Ehlers in a paper published in a 2001 edition of Technical Analysis of Stocks and Commodities Magazine.  The below was excerpted from the publication,

“The MESA Adaptive Moving Average (MAMA) adapts to price movement based on the rate of change of phase as measured by the Hilbert Transform Discriminator (Technical Analysis of Stocks and Commodities magazine, December 2000). This method features a fast attack average and a slow decay average so that composite average rapidly ratchets behind price changes and holds the average value until the next ratchet occurs.”

Dedicated investors tend to spend a lot of time trying to decipher the correct procedure for beating the stock market. This may involve figuring out a proper strategy, and deciding which stocks to start with when constructing a portfolio. Building a portfolio does not have to be a frantic race. In fact, not rushing into things may end up putting the investor in a good position to succeed. There are times when tough decisions need to be made when dealing with the equity market. Spending enough time to assess all the possibilities before making an investing decision may pay off down the road. As most investors know, there is no magic formula for coming out a winner in the stock market. Acquiring the most possible knowledge about the markets and individual stocks can play a vital role in the long-term success of the individual investor. 

Let’s take a look at some additional technical levels on shares of Bioanalytical Syst (BASI). The current 14-day RSI is noted at 51.76, the 7-day is 47.35, and the 3-day is seen at 33.68. The RSI, or Relative Strength Index is a popular oscillating indicator among traders and investors. The RSI operates in a range-bound area with values between 0 and 100. Many traders keep an eye on the 30 and 70 marks on the RSI scale. A move above 70 is widely considered to show the stock as overbought, and a move below 30 would indicate that the stock may be oversold. Traders may use these levels to help identify stock price reversals.

Traders may be focusing on other technical indicators for stock assessment. Presently, Bioanalytical Syst (BASI) has a 14-day Commodity Channel Index (CCI) of -93.93. The CCI technical indicator can be used to help determine if a stock is overbought or oversold. CCI may also be used to help discover divergences that could possibly signal reversal moves. A CCI closer to +100 may provide an overbought signal, and a CCI near -100 may offer an oversold signal. Investors may be watching other technical indicators such as 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. Bioanalytical Syst (BASI)’s Williams %R presently stands at -30.00. 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.

Currently, the 14-day ADX for Bioanalytical Syst (BASI) is sitting at 17.78. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would identify a very strong trend, and a value of 75-100 would lead to an extremely strong trend. ADX is used to gauge trend strength but not trend direction. Traders often add the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of a 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 1.60.

Investors studying the fundamentals might be conducting in-depth company research before deciding when to purchase a particular stock. The investor checklist may include studying the scope of a company’s competitive industry advantage, examining company management, and trying to get a general feel if the stock is valued properly. Once the decision is made that the company is a good fit for the portfolio, it may be wise to assess whether or not current conditions and price levels indicate proper levels for share purchase. The timing of purchasing a researched stock obviously comes with some level of trepidation. Investors will only know in the future whether they got in at the right price. A stock that looks very attractive today may not be as attractive in the future. Sometimes the investor will just have to trust their research and instinct when purchasing shares.