Trading Watch: Shares of Utilities Alphadex First Trust (FXU) Trading Under Chikou

Tracking shares of Utilities Alphadex First Trust (FXU), we have noted that the current price is lower than the Chikou. Traders tracking this signal will be watching for possible future downside momentum.

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. 

After a recent look, Utilities Alphadex First Trust (FXU) has a 50-day Moving Average of 28.67, the 200-day Moving Average is 28.12, and the 7-day is noted at 29.31. A popular 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 specific period of time. Moving averages can be very useful for identifying peaks and troughs. They may also be used to help the trader figure out proper support and resistance levels for the stock.

Investors may use various technical indicators to help spot trends and buy/sell signals. Presently, Utilities Alphadex First Trust (FXU) has a 14-day Commodity Channel Index (CCI) of 45.86. The CCI was developed by Donald Lambert. The assumption behind the indicator is that investment instruments move in cycles with highs and lows coming at certain periodic intervals. The original guidelines focused on creating buy/sell signals when the reading moved above +100 or below -100. Traders may also use the reading to identify overbought/oversold conditions.

Let’s take a closer look at some technical levels for Utilities Alphadex First Trust (FXU). The 14-day RSI is presently at 55.93, the 7-day is 55.92, and the 3-day is spotted at 49.14. The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of stock price movements. The RSI was developed by J. Welles Wilder, and it oscillates between 0 and 100. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70. RSI can be used to detect general trends as well as finding divergences and failure swings.

At the time of writing, the 14-day ADX for Utilities Alphadex First Trust (FXU) is 14.70. 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.

Some dedicated market watchers will preach the old adage, nothing ventured nothing gained. Some may adhere to the slow and steady mindset. The correct play for one investor may not be the same for another. Some may choose to be fully invested while others may keep some cash on the sidelines. Active stock market investors may have to find that perfect balance between being too risky or playing it too safe. If the market keeps charging higher in the second half of the year, investors may have to decide whether to take profits, or let it ride.