Neogenomics Inc (NEO) Seeing Chikou Move Above Tenkan Line

Neogenomics Inc (NEO) Chikou span line has moved above the Tenkan price line, indicating a potential trend reversal.  The chikou span represents one of Ichimoku’s most unique features; that of time-shifting certain lines backwards or forwards in order to gain a clearer perspective of price action. In the chikou span’s case, the current closing price is time-shifted backwards by 26 periods. While the rationale behind this may at first appear confusing, it becomes very clear once we consider that it allows us to quickly see how today’s price action compares to the price action of 26 periods ago, which can help determine trend direction.  If a Chikou span is descending quickly into a past price line, it could be a sign of exhaustion for the asset. Another popular use of the Chikou span is to help confirm points of possible resistance or support. The juxtaposition of the current trend against past price trends allows for an easier comparison of peaks and troughs. Traders can then combine the Chikou with other momentum indicators to exit or enter positions for potential breakouts.

Investors may be trying to decide which way the stock market will shift over the next couple of quarters. Having a general idea based on research is one thing, but constantly trying to time the market may lead to negative portfolio performance. Of course, overall market downturns can be frustrating to everyone invested in shares. Being able to ride out the day to day volatility and make proper investing decisions based on solid stock examination, may help the investor secure profits down the line. Investors who spend too much time focusing on stocks that have already made a run may find themselves in a sticky situation if they get into the name to late. Just because a certain stock has been going up for a long time, it doesn’t mean that the momentum will be sustained into the future. Taking the time to find quality stocks instead of just looking at the hot stock of the day, may allow investors to keep thriving in the market.

At the time of writing, the 14-day ADX for Neogenomics Inc (NEO) is standing at 59.43. Many chart analysts believe that an ADX reading over 25 would suggest a strong trend. A reading under 20 would suggest no trend, and a reading from 20-25 would suggest that there is no clear trend signal.

What Is ADX?

The Average Directional Index or ADX. The ADX was created by J. Welles Wilder to help determine how strong a trend is. In general, a rising ADX line means that an existing trend is gaining strength. The opposite would be the case for a falling ADX line.

Looking further at additional technical indicators we can see that the 14-day Commodity Channel Index (CCI) for Neogenomics Inc (NEO) is sitting at 120. CCI is an indicator used in technical analysis that was designed by Donald Lambert. Although it was originally intended for commodity traders to help identify the start and finish of market trends, it is frequently used to analyze stocks as well. A CCI reading closer to +100 may indicate more buying (possibly overbought) and a reading closer to -100 may indicate more selling (possibly oversold).

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. Shares of Neogenomics Inc (NEO) have a 7-day moving average of 11.46. Taking a glance at the relative strength indictor, we note that the 14-day RSI is currently at 78.85, the 7-day stands at 79.34, and the 3-day is sitting at 83.17.

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.