Vector Capital Ltd (VEC.AX) VMA Trending Higher Of Late

Shares of Vector Capital Ltd (VEC.AX) have seen the volume moving average (VMA) climb over the past seven sessions.  The stock recently touched 0.018, or a change of -0.001 from the most recent open.

Often times, investors may become worried when the stock market is highly volatile. Being prepared for volatile situations can help ease the fears that come along with turbulence. Following a well-crafted plan might help ride out the ups and downs that are a normal part of dealing with the market. Investors should be prepared for market situations that provide ample opportunities. Although market downturns can be unsettling and cause panic, investors who are able to stay the course and keep calm may be able to spot good buying opportunities when the wider market is selling. 

Investors may be combing through all the latest company earnings reports. They may be trying to figure out which companies look like they are going to be strong over the next few quarters. Earnings reports have the ability to cause dramatic stock price swings. Many investors will stay away from making any big trades around earnings announcements. When the dust settles, it may be much easier to determine whether a stock is worth buying or if it should be sold. Keeping a close eye on historical earnings results can provide some good insight. Companies that consistently produce solid earnings may be worth looking into further, especially if the investor is on the fence about getting into the name.

A longer period VMA (aka Slow VMA – a larger number for the period) is often used to highlight long-term surges in volume. Significant volume surges sometimes precede long-term trend reversals. A shorter-period VMA (aka Fast VMA – a smaller number for the period) is often used to highlight short-term volume surges, which may precede short-term trend reversals. Watch out when selecting your period for your VMA to avoid setting your period too high or too low, as the volume will either be smoothed out too much or be too erratic for practical use.

Turning to technicals, shares of Vector Capital Ltd (VEC.AX) have a 200-day moving average of 0.02. The 50-day is 0.02, and the 7-day is sitting at 0.02. Using a wider time frame to assess the moving average such as the 200-day, may help block out the noise and chaos that is often caused by daily price fluctuations. In some cases, MA’s may be used as strong reference points for spotting support and resistance levels. Employing the use of the moving average for technical equity analysis is still highly popular among traders and investors. The moving average can be used as a reference point to assist with the discovery of buying and selling opportunities.

Vector Capital Ltd (VEC.AX)’s Williams Percent Range or 14 day Williams %R currently sits at -66.67. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would point to an overbought situation. A reading from -80 to -100 would signal an oversold situation. The Williams %R was developed by Larry Williams. This is a momentum indicator that is the inverse of the Fast Stochastic Oscillator.

Vector Capital Ltd (VEC.AX) currently has a 14-day Commodity Channel Index (CCI) of 100.46. Active investors may choose to use this technical indicator as a stock evaluation tool. Used as a coincident indicator, the CCI reading above +100 would reflect strong price action which may signal an uptrend. On the flip side, a reading below -100 may signal a downtrend reflecting weak price action. Using the CCI as a leading indicator, technical analysts may use a +100 reading as an overbought signal and a -100 reading as an oversold indicator, suggesting a trend reversal.

Currently, the 14-day ADX for Vector Capital Ltd (VEC.AX) is sitting at 11.85. 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. 

The RSI, or Relative Strength Index, is a widely used technical momentum indicator that compares price movement over time. The RSI was created by J. Welles Wilder who was striving to measure whether or not a stock was overbought or oversold. The RSI may be useful for spotting abnormal price activity and volatility. The RSI oscillates on a scale from 0 to 100. The normal reading of a stock will fall in the range of 30 to 70. A reading over 70 would indicate that the stock is overbought, and possibly overvalued. A reading under 30 may indicate that the stock is oversold, and possibly undervalued. After a recent check, the 14-day RSI is currently at 47.63, the 7-day stands at 50.39, and the 3-day is sitting at 48.89.