Digital Turbine (APPS) shares have seen the Money Flow Indicator climb above 60, potentially spelling a near-term reversal if it crosses above the 70 line.  The Money Flow Indicator is a unique indicator that combines momentum and volume with an RSI formula. Because of its incorporation of volume, the MFI is better suited to identify potential reversals using both overbought/oversold levels and bullish/bearish divergences. As with all indicators, the MFI should not be used by itself. A pure momentum oscillator, such as RSI, or pattern analysis can be combined with the MFI to increase signal accuracy.

The MFI was created by Gene Quong and Avrum Soudack and they believed a reading above 70-80 would signify Overbought territory where a reading below 20-10 would indicate that the conditions were indicative of an Oversold price level.

Investors who are able to wipe the slate clean and take a fresh look at a certain stock may be able to make more informed decisions that will hopefully lead to increased profits in the long-term. Figuring out when to sell an underperforming stock may end up being just as important as figuring out which stocks to buy. As the stock market continues to trade near record levels, investors will be closely following trading action heading into the latter half of the year. With many stocks reaching new highs, investors may need to make sure that they aren’t getting too overconfident with trades. When a few winning trades are strung together, investors may feel like they have the Midas touch and they can do no wrong. Nobody knows for sure how long stocks will stay in favor with investors. Keeping track of the portfolio’s contents can help when quick decisions need to be made. There may come a time when the tide turns and making a winning trade may seem impossible. Investors might want to have a plan in place in case of a sudden major market downturn. Keeping the portfolio stable during periods of market uncertainty may help prepare for unforeseen events in the future. Although there are many market enthusiasts that think the bull run may be on its last legs, there are just as many who believe that the best is yet to come, and there is much more room for stocks to climb.  

Taking a deeper look into the technicals, Digital Turbine (APPS) currently has a 50-day Moving Average of 6.85, the 200-day Moving Average is 4.69, and the 7-day is noted at 7.14. Following moving averages with different time frames may help offer a wide variety of stock information. A longer average like the 200-day may serve as a smoothing tool when striving to evaluate longer term trends. On the flip side, a shorter MA like the 50-day may help with identifying shorter term trading signals. Moving averages may also function well as a tool for determining support and resistance levels.

Traders may be relying in part on technical stock analysis. Digital Turbine (APPS) currently has a 14-day Commodity Channel Index (CCI) of 143.36. Despite the name, CCI can be used on other investment tools such as stocks. The CCI was designed to typically stay within the reading of -100 to +100. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction. On the other hand, a reading of -100 would imply that the stock is oversold and possibly set for a rally.

At the time of writing, the 14-day ADX for Digital Turbine (APPS) is 21.96. Many technical chart analysts believe that an ADX value over 25 would suggest a strong trend. A reading 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.

The Relative Strength Index (RSI) is one of multiple popular technical indicators created by J. Welles Wilder. Wilder introduced RSI in his book “New Concepts in Technical Trading Systems” which was published in 1978. RSI measures the magnitude and velocity of directional price movements. The data is represented graphically by fluctuating between a value of 0 and 100. The indicator is computed by using the average losses and gains of a stock over a certain time period. RSI can be used to help spot overbought or oversold conditions. An RSI reading over 70 would be considered overbought, and a reading under 30 would indicate oversold conditions. A level of 50 would indicate neutral market momentum. The 14-day RSI is currently sitting at 68.67, the 7-day is at 84.28, and the 3-day is spotted at 97.87.

There are various ways that the individual investor can approach stock picking. Starting from the top-down, investors may study overall market trends. This may include examining different sectors looking for the ones that are poised to prosper in the future. Once potential industries or sectors are identified, the investor can then start to sift through individual stocks within those groups. Investors starting from the bottom up may do just the opposite. They may choose to study individual companies that have been displaying strong performance, regardless of which sector they belong to.