Shares of The Southern Co. Series (SOJA) are on watch as they closed the most recent session above the Parabolic SAR line. The current level of the shares currently stands at 26.05 at the time of writing.
The main usage of the Parabolic SAR is for trailing stops and exit points. The principle of trading using this indicator is easy. A long position should be maintained as long as the indicator is moving above the price levels, whereas a short position – while it is below them. In addition, when the SAR changes its direction and crosses the price levels, not only the current position should be closed, but it is suggested that the opposite one should be opened at the same price levels.
However, it should be used only when the market has the defined trend (around 30% of the time) and is smoother. When the trend is absent or the market is volatile, this system generates a lot of incorrect signals. Moreover, the indicator should be adjusted depending on the characteristics of the underlying shares.
Often times, the stock market will be affected by political, social, or economic events. The result may be end up to be positive or negative. It is wise to remember that market fluctuations can happen at any time for many various reasons. Sometimes it may not be evident of why the market moved until long after the scene has played out. Making investment decisions in a turbulent climate may be extremely tricky. At some point, investors may find themselves on the wrong end of a trade. Staying vigilant in the markets may help investors bounce back after a temporary defeat. Investors who stay the course and stay with an investment plan may be able to better handle the ups and downs of daily market movements. Repeatedly trying to find the tops or bottoms is not an easy task. Even the most seasoned investors may not be able to successfully time the market.
Active traders have a wide range of technical indicators at their disposal for when completing technical stock analysis. Currently, the 14-day ATR for The Southern Co. Series (SOJA) is spotted at 0.10. First developed by J. Welles Wilder, the ATR may assist traders in determining if there is heightened interest in a trend, or if extreme levels may be signaling a reversal. Simply put, the ATR determines the volatility of a security over a given period of time, or the tendency of the security to move one direction or another.
Checking in on some other technical levels, the 14-day RSI is currently at 47.21, the 7-day stands at 45.34, and the 3-day is sitting at 36.89. The RSI, or Relative Strength Index, is a commonly used technical momentum indicator that compares price movement over time. The RSI was created by J. Welles Wilder who was striving to measure whether or not a stock was overbought or oversold. The RSI may be useful for spotting abnormal price activity and volatility. The RSI oscillates on a scale from 0 to 100. The normal reading of a stock will fall in the range of 30 to 70. A reading over 70 would indicate that the stock is overbought, and possibly overvalued. A reading under 30 may indicate that the stock is oversold, and possibly undervalued.
Another technical indicator that may be a powerful resource for determining trend strength is the Average Directional Index or ADX. The ADX was introduced by J. Welles Wilder in the late 1970’s and it has stood the test of time. The ADX is typically used in conjunction with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to help spot trend direction as well as trend strength. At the time of writing, the 14-day ADX for The Southern Co. Series (SOJA) is noted at 19.44. Many technical analysts believe that an ADX value over 25 would suggest a strong trend. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal.
The Williams Percent Range or Williams %R is another technical indicator worth taking a look at. The Southern Co. Series (SOJA) currently has a 14 day Williams %R of -44.83. 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.
The Southern Co. Series (SOJA) currently has a 14-day Commodity Channel Index (CCI) of -23.63. 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.
Investors may be taking a closer look at holdings and trying to decide which way the stock market will lean in the second half of the year. Maybe there are some surprising winners, and the decision needs to be made to either sell for a profit or hold on for further potential gains. Maybe there are some losers that are being held onto with the hope of a rebound. Sometimes investors may get too emotionally attached to certain stocks. Keeping unbiased focus on the market may help provide the portfolio with an added boost. Nobody knows for sure what will transpire over the next few quarters. As earnings reports flow in, investors will be monitoring which companies provide the biggest surprises.