Five9 Inc (FIVN) are on trader’s watchlists today as the shares have moved below a key Mass Index level of 26.5. When Donald Dorsey developed the Mass Index indicator, his rationale was that if the prevailing trend were going to change, the price range would have to widen. Dorsey looked for “reversal bulges” to signal a trend reversal. According to Dorsey, a bulge occurs when the Mass Index moves above 27. This initial bulge does not complete the signal though. Dorsey waited for this bulge to reverse with a move back below 26.50. Once the reversal bulge is complete, traders should use other analysis techniques to determine the direction of the next move.
Investors are always trying to get an advantage in the equity market. Everyone wants to find that next great stock pick that provides a solid boost to the portfolio. Investors often identify risk preference when trying to sort out asset allocation. In general, a higher amount of risk may offer a greater potential for growth. Many investors may struggle with the concept of leaving emotion out of picking stocks. Equity research may involve a high degree of patience, determination, and lots of homework. Learning everything possible about the markets can help the individual investor better navigate the waters. As the old saying goes, knowledge is power. Being able to filter through the data to determine what is relevant information may assist the investor with making those tough investment decisions.
Investors and traders continue to monitor technical levels of shares of Five9 Inc (FIVN). A frequently used 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 certain period of time. Moving averages can be very helpful for identifying peaks and troughs. They may also be used to assist the trader figure out proper support and resistance levels for the stock. Currently, the 200-day MA is sitting at 49.83, and the 50-day is 54.20.
The 14-day ADX for Five9 Inc (FIVN) is currently at 32.65. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would signify a very strong trend, and a value of 75-100 would point to an extremely strong trend. Checking in on some other technical levels, the 14-day RSI is currently at 62.50, the 7-day stands at 59.01, and the 3-day is sitting at 41.34. 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, Five9 Inc (FIVN) has a 14-day Commodity Channel Index (CCI) of 66.65. 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. CCI generally measures the current price relative to the average price level over a specific time period. CCI is relatively high when prices are much higher than average, and relatively low when prices are much lower than the average. Investors may be watching other technical indicators such as 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. Five9 Inc (FIVN)’s Williams %R presently stands at -21.56. 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.
Occasionally, a certain stock may perform much higher than expectations, and it may become a much greater percentage of the portfolio. This is typically a good thing, but it may require some decisions on what to do with the portfolio allocations. If one stock is making up a high percentage of the total, it may create the risk of higher than normal average losses if the shares take an unforeseen dive lower. Even if the stock has the potential to go much higher, it can be tricky to know when to sell and find other stocks that might be a better value. Selling a winner might leave the average investor frustrated if the stock goes higher, but there may be nothing wrong with taking profits and not leaving gains on the table. As we move into the second half of the year, investors may want to compare first half gains with goals that were established at the beginning of the year. This may help narrow in on what needs to be done in order to stay in the green for the rest of the year and beyond. Setting portfolio goals may be a good way to stay the course when things get a little hairy in the markets.
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