Sprott Physical Gold Trust (PHYS) shares are showing negative signals short-term as the stock has finished lower by -0.48% for the week. In taking a look at recent performance, we can see that shares have moved -0.76% over the past 4-weeks, 9.13% over the past half year and -4.15% over the past full year.
As the next round of earnings reports come into the spotlight next quarter, investors may be deciding how to get into the best position to make the most profitable trades. Earnings reports have the ability to influence stock prices dramatically. Sometimes it can be hard to figure out which way the price will go even if the reported numbers are up to snuff. Some investors enjoy the frantic trading opportunities around earnings reports, and others will stay as far away as possible. Even if the investor isn’t planning on making any moves during earnings season, it may be wise to follow what companies are reporting. If the numbers from a certain holding come in way out of whack, it may be necessary to do some in-depth research to try and find out the reason. Investors that make sure that all the bases are covered will typically find it easier to make sense out of certain anomalies that pop up in the markets from time to time. Putting in the extra time and effort to understand the ins and outs of a particular stock may help boost the novice investor up to the next level. Every investor wants their trades to be profitable, and doing that little extra piece of homework could be just what the finance doctor ordered for staying on top of the stock market.
The Relative Strength Index (RSI) is one of multiple popular technical indicators created by J. Welles Wilder. Wilder introduced RSI in his book “New Concepts in Technical Trading Systems” which was published in 1978. RSI measures the magnitude and velocity of directional price movements. The data is represented graphically by fluctuating between a value of 0 and 100. The indicator is computed by using the average losses and gains of a stock over a certain time period. RSI can be used to help spot overbought or oversold conditions. An RSI reading over 70 would be considered overbought, and a reading under 30 would indicate oversold conditions. A level of 50 would indicate neutral market momentum. The 14-day RSI is currently sitting at 42.07, the 7-day is at 36.40, and the 3-day is spotted at 23.18 for Sprott Physical Gold Trust (PHYS).
Investors may be tracking certain levels on shares of Sprott Physical Gold Trust (PHYS). The current 50-day Moving Average is 10.55, the 200-day Moving Average is 10.07, and the 7-day is noted at 10.47. Moving averages can help spot trends and price reversals. They may also be used to help find support or resistance levels. Moving averages are considered to be lagging indicators meaning that they confirm trends. A certain stock may be considered to be on an uptrend if trading above a moving average and the average is sloping upward. On the other side, a stock may be considered to be in a downtrend if trading below the moving average and sloping downward.
Traders may be relying in part on technical stock analysis. Sprott Physical Gold Trust (PHYS) currently has a 14-day Commodity Channel Index (CCI) of -75.03. Despite the name, CCI can be used on other investment tools such as stocks. The CCI was designed to typically stay within the reading of -100 to +100. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction. On the other hand, a reading of -100 would imply that the stock is oversold and possibly set for a rally.
At the time of writing, the 14-day ADX for Sprott Physical Gold Trust (PHYS) is 15.49. Many technical chart 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 ADX is typically plotted along with two other directional movement indicator lines, the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI). Some analysts believe that the ADX is one of the best trend strength indicators available.
Stock market investors are typically searching for solid quality companies to help boost the portfolio. There are plenty of quality companies out there, the tricky part may be determining what constitutes as quality. Many investors look for companies that are solid sales leaders within a market that is growing. Going further, investors may be studying a company’s proven track record and gauging the competence of current management. Adding other factors such as brand recognition and prospects for steady growth, investors may eventually find a company that is worth taking the risk for future returns.