Investors might be interested in taking a closer look at stock technical levels. After a recent check, Heritage Commerce (HTBK) has a 14-day ATR of 0.33. The average true range indicator was created by J. Welles Wilder in order to measure volatility. The ATR may help traders to determine the strength of a breakout or reversal in price. It is important to mention that the ATR was not designed to calculate price direction or to predict future prices.
Currently, the 14-day ADX for Heritage Commerce (HTBK) is sitting at 27.14. 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.
Checking in on some other technical levels, the 14-day RSI is currently at 69.36, the 7-day stands at 68.75, and the 3-day is sitting at 53.56. Many investors look to the Relative Strength Index (RSI) reading of a particular stock to help identify overbought/oversold conditions. The RSI was developed by J. Welles Wilder in the late 1970’s. Wilder laid out the foundation for future technical analysts to further investigate the RSI and its relationship to underlying price movements. Since its inception, RSI has remained very popular with traders and investors. Other technical analysts have built upon the work of Wilder. The 14-day RSI is still a widely popular choice among technical stock analysts.
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. Heritage Commerce (HTBK)’s Williams %R presently stands at -24.24. 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.
Taking a closer look from a technical standpoint, Heritage Commerce (HTBK) presently has a 14-day Commodity Channel Index (CCI) of 98.40. 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.
Investors often closely follow fundamental and technical data. Even with all the evidence, it can be tough to determine if the economy and the markets are preparing for a whole new breakout run. With the recent trend resulting in a series of new all-time record highs, investors will have to put the pieces together to try and gauge how long the second longest bull market in history will continue. Some professionals are still wondering if the next recession is looming, and if a bear market is right around the corner. Investors commonly strive to locate the highest probability of success. The next goal may be to capitalize on what could become the most interesting part of the record bull market. Investors will most likely be concentrating on what has proven to work in the past, which may offer a better idea as to how successful the strategies will be heading into the second half of the year and beyond.