Ultrashort Smallcap 600 Proshares (SDD) Chart Update & Technical Review

Ultrashort Smallcap 600 Proshares (SDD) is on trader’s radar as the shares have moved below the MACD Histogram line, indicating a bearish chart.  Shares recently touched 12.679 on a recent bid. 

The MACD is calculated by subtracting the value of a 26-day exponential moving average from a 12-day exponential moving average. A 9-day dotted exponential moving average of the MACD (the “signal” line) is then plotted on top of the MACD.  Taking a step further, the MACD-Histogram, which was developed by Thomas Aspray in 1986, measures the distance between MACD and its signal line (the 9-day EMA of MACD).

Like MACD, the MACD-Histogram is also an oscillator that fluctuates above and below the zero line. Aspray developed the MACD-Histogram to anticipate signal line crossovers in MACD. Because MACD uses moving averages and moving averages lag price, signal line crossovers can come late and affect the reward-to-risk ratio of a trade. Bullish or bearish divergences in the MACD-Histogram can alert chartists to an imminent signal line crossover in MACD.

Additional Technical Review

Ultrashort Smallcap 600 Proshares (SDD)’s Williams Percent Range or 14 day Williams %R is currently sitting at -85.98. In general, if the reading goes above -20, the stock may be considered to be overbought. Alternately, if the indicator goes under -80, this may show the stock as being oversold.

As the next company earnings season comes into focus, investors may be closely following the numbers as they are released. Some investors will choose to stay away from any big trades during earnings season. Others will opt to try to capitalize on stock price fluctuations that may occur before and after the earnings report. Wall Street analysts may be getting ready to make estimate revisions over the next couple of weeks. Investors have the ability to follow analyst estimates and recommendations when undertaking stock analysis. Investors may choose to review analyst projections and then make their own decisions on what they think the company will report for the quarter.

We can also take a look at the Average Directional Index or ADX of Ultrashort Smallcap 600 Proshares (SDD). The ADX is used to measure trend strength. ADX calculations are made based on the moving average price range expansion over a specified amount of time. ADX is charted as a line with values ranging from 0 to 100. The indicator is non-directional meaning that it gauges trend strength whether the stock price is trending higher or lower. The 14-day ADX presently sits at 17.13. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would indicate a very strong trend, and a value of 75-100 would signify an extremely strong trend. At the time of writing, the 14-day Commodity Channel Index (CCI) is -61.73. 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.

A commonly 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 for Ultrashort Smallcap 600 Proshares (SDD) is sitting at 14.21. 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. The 14-day RSI is presently standing at 38.57, the 7-day is 35.34, and the 3-day is resting at 58.40.

Often times, investors are faced with challenging portfolio decisions. Maybe there are a few stocks that have outperformed expectations by a large margin. Investors may be hesitant to exit a position with the fear that the stock may have much more room to run. Investors may have to decide if the time is right to cash in and take some profits, or hold out for further gains. On the other end, investors may have a few duds in the portfolio. Cutting ties with certain underperformers can be a tough decision. It may be hard for an investor to sell a position that they thought for sure was going to pan out and provide gains. Being able to detach from a certain position may help ease the possibility of even more frustration later down the line if the stock doesn’t bounce back.

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