Is Downward Momentum Building For Unisys Corp (UIS)?

Unisys Corp (UIS) shares are under watch as the Aroon Oscillator is showing a negative trend building.  The Aroon indicator, popularized by technician Tushar Chande, can be used to determine a likely direction for a particular market on several different time frames. It can be used in forex, stock or commodity markets. Since Chande began discussing the indicator in 1995, it has been demonstrated to be effective, but remains less widely used than other indicators. A reading above zero means that Aroon-Up is greater than Aroon-Down, which implies that prices are making new highs more recently than new lows. Conversely, readings below zero indicate that Aroon-Down is greater than Aroon-Up. This implies that prices are recording new lows more recently than new highs. As you can see, the Aroon Oscillator is either going to be positive or negative the vast majority of the time. This makes interpretation straight-forward. Time and price favor an uptrend when the indicator is positive and a downtrend when the indicator is negative. A positive or negative threshold can be used to define the strength of the trend. For example, a surge above +50 would reflect a strong upside move, while a plunge below -50 would indicate a strong downside move.

Stock market investing can sometimes be a wild ride. High volatility stocks may seem to constantly going haywire. Finding a comfortable balance between stomach turning stocks and low volatility stable stocks may be the way to go. Building confidence in the stock portfolio may come with some trial and error for the individual investor. Many people will rely on others to actively manage their money, but there are always those who prefer to have a hand in every aspect of their hard earned cash. Staying on top of the markets may seem impossible sometimes. There is always something happening, and keeping the pulse on market movements may be quite a struggle. Applying the proper amount of time to dedicate for stock research might just be the difference between buying that next big winner or getting stuck with a big loser.     

In terms of Relative Strength Index for Unisys Corp (UIS), the 14-day RSI is currently noted at 42.40, the 7-day is 57.51, and the 3-day is sitting at 85.26. 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.

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In terms of CCI levels, Unisys Corp (UIS) currently has a 14-day Commodity Channel Index (CCI) of 43.38. 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 35.73. 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. Unisys Corp (UIS)’s Williams %R presently stands at -35.63. 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 11.10, the 50-day is 9.19, and the 7-day is sitting at 6.90. 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.

Investors may be trying to decide if stocks will make new highs before the year is out, and whether or not the bull market will celebrate its 9th anniversary next year. The tricky part is prognosticating the short term picture. Investors may not be comfortable enough to go all in, but they may not want to get bearish given the solid economic backdrop. Will there be a big breakout given the strength of earnings and economic growth? Will investors just become numb to the headlines and decide to focus on the positive economic picture? It is always wise to remember that the market can have a correction at any time for any reason. If the political landscape gets even more dysfunctional, then it may be enough of a driver to spur a correction.