Spitfire Energy Ltd (SPGYF) Aroon Signals Rolling Downward

Spitfire Energy Ltd (SPGYF) shares have seen increased volatility of late and the Aroon Oscillator is showing signs of a continued downtrend with a negative reading that is gaining momentum.  The Aroon Oscillator was developed by Tushar Chande to highlight the start of a new trend and to measure trend strength. Chande first described the indicator in the September 1995 issue of Stocks & Commodities magazine. The Aroon indicator system consists of three lines: Aroon Up, Aroon Down, and the Aroon Oscillator which reflects the difference between the two. “Aroon” is a Sanskrit word meaning “dawn’s early light”.  The Aroon indicator is derived from two lines, Aroon Up and Aroon Down. Both lines run in a marked range between 0-100 to help define a currency pair’s strength or weakness. The Aroon Down is depicted as a green line and as its name suggests helps track price in a downtrend. Aroon Up is depicted as a red line and measures the strength of an uptrend. Traders will watch both lines as they oscillate between 0-100 and change their market preference as one line crosses above the other. If Aroon Down is above Aroon Up the trend is considered down with price expected to go lower.

In terms of Relative Strength Index for Spitfire Energy Ltd (SPGYF), the 14-day RSI is currently noted at 51.71, the 7-day is 43.35, and the 3-day is sitting at 30.47. The Relative Strength Index (RSI) is a very popular momentum indicator used for technical analysis. The RSI can help show whether the bulls or the bears are currently strongest in the market. The RSI may be used to help spot points of reversals more accurately. The RSI was developed by J. Welles Wilder. As a general rule, an RSI reading over 70 would signal overbought conditions. A reading under 30 would indicate oversold conditions.

In terms of CCI levels, Spitfire Energy Ltd (SPGYF) currently has a 14-day Commodity Channel Index (CCI) of -45.29. Investors and traders may use this indicator to help spot price reversals, price extremes, and the strength of a trend. Many investors will use the CCI in conjunction with other indicators when evaluating a trade. The CCI may be used to spot if a stock is entering overbought (+100) and oversold (-100) territory. The 14-day ADX is presently 27.77. Many technical chart analysts believe that an ADX reading over 25 would suggest a strong trend. A level 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.

Investors may be studying other technical indicators like 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. Spitfire Energy Ltd (SPGYF)’s Williams %R presently stands at -76.74. 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. Looking at some moving average levels, the 200-day is at 7.02, the 50-day is 6.85, and the 7-day is sitting at 7.65. Moving averages can help identify trends and price reversals. They may also be used to help spot support and 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.