How is the SMI Shaping up for Wisdomtree Invstmnts (WETF) After Recent Volatility?

The Stochastic Momentum Index (SMI) for Wisdomtree Invstmnts (WETF) has pinging above +40, reaching key levels.  The most common method of using SMI is to look for buy trades when the SMI falls under -40 and then rises back above through -40.  Sell trades are looked for when the SMI rises above +40 and then falls back below +40.  The SMI is considered a refinement of the stochastic oscillator. It calculates the distance of the current closing price as it relates to the median of the high/low range of price. William Blau developed the SMI in an attempt to provide a more reliable indicator, less subject to false swings.

Investors are taking another look at shares of Wisdomtree Invstmnts (WETF). 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. Viewing the Relative Strength Index, the 14-day RSI is presently standing at 75.95, the 7-day is 83.59, and the 3-day is resting at 74.33.

Currently, the 14-day ADX for Wisdomtree Invstmnts (WETF) is sitting at 33.29. 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.

Investors have the ability to use technical indicators when completing stock research. At the time of writing, Wisdomtree Invstmnts (WETF) has a 14-day Commodity Channel Index (CCI) of 93.01. Developed by Donald Lambert, the CCI is a versatile tool that may be used to help spot an emerging trend or provide warning of extreme conditions. In terms of Moving Averages, the 7-day is resting at 11.39. Moving averages have the ability to be used as a powerful indicator for technical stock analysis. Interested traders may be keeping an eye on the Williams Percent Range or Williams %R. Williams %R is a popular technical indicator created by Larry Williams to help identify overbought and oversold situations. Wisdomtree Invstmnts (WETF)’s Williams Percent Range or 14 day Williams %R currently sits at -10.86. In general, if the indicator goes above -20, the stock may be considered overbought. Alternately, if the indicator goes below -80, this may point to the stock being oversold.