Topbuild Corp (BLD) SMI Reading Painting a New Picture

The Stochastic Momentum Index (SMI) for Topbuild Corp (BLD) has pinging above +40, reaching key levels.  The most common method of using SMI is to look for buy trades when the SMI falls under -40 and then rises back above through -40.  Sell trades are looked for when the SMI rises above +40 and then falls back below +40.  The SMI is considered a refinement of the stochastic oscillator. It calculates the distance of the current closing price as it relates to the median of the high/low range of price. William Blau developed the SMI in an attempt to provide a more reliable indicator, less subject to false swings.

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Tackling the stock market may involve many different aspects. Investors may at times feel like they are on a wild ride. Sometimes there are extreme highs, and sometimes there are extreme lows. Figuring out how to best deal with fluctuations can help the investor’s mindset. Investors who are able to keep their emotions in check might be one step ahead of the rest. Being able to identify emotional weaknesses can help the investor avoid tricky situations when things get hairy. Keeping the stock portfolio on the profitable side may involve making decisions that require emotional detachment. When emotions are running high, it may impair the rational decision making capability of the investor.  

Topbuild Corp (BLD)’s current 14-day Willams %R value has been spotted at -0.06. Values can span from 0 to -100. A reading between -80 to -100 may be typically viewed as strong oversold territory. A value between 0 to -20 would indicate a strong overbought condition. As a momentum indicator, the Williams R% may be combined with other technicals to help identify a specific trend.

Topbuild Corp (BLD) presently has a 14-day Commodity Channel Index (CCI) of 272.65. Typically, the CCI oscillates above and below a zero line. Normal oscillations tend to stay in the range of -100 to +100. A CCI reading of +100 may represent overbought conditions, while readings near -100 may indicate oversold territory. Although the CCI indicator was developed for commodities, it has become a popular tool for equity evaluation as well. Checking on another technical indicator, the 14-day RSI is currently sitting at 73.67.

The Relative Strength Index (RSI) is a highly popular technical indicator. The RSI is computed base on the speed and direction of a stock’s price movement. The RSI is considered to be an internal strength indicator, not to be confused with relative strength which is compared to other stocks and indices. The RSI value will always move between 0 and 100. One of the most popular time frames using RSI is the 14-day.

Moving average indicators are commonly tracked by technical stock analysts. Many traders will use a combination of moving averages with multiple time periods to help spot stock trend direction. One of the more popular combinations is to use the 50-day and 200-day moving averages. Investors may use the 200-day MA to help smooth out the data a get a clearer long-term picture. They may look to the 50-day or 20-day to get a better grasp of what is going on with the stock in the near-term. Presently, the 200-day moving average is at 78.47, and the 50-day is 95.78. The 14-day ADX for Topbuild Corp (BLD) is standing at 20.50. Many chart analysts believe that an ADX reading over 25 would suggest a strong trend. A reading under 20 would suggest no trend, and a reading from 20-25 would suggest that there is no clear trend signal.

Investors are constantly on the lookout for that next great stock pick. Finding that particular stock that had been overlooked by the rest of the investing community can bring great satisfaction to the individual investor. Spotting these stocks may take a lot of time and effort, but the rewards may be well worth it. Knowledge is power, and this principle also translates over to the equity market. Investors who are able to dig a little bit deeper may be setting themselves up for much greater success in the long run. These days, investors have access to a wide range of information. Trying to filter out the important information can be a key factor in portfolio strength. Knowing what data to look for and how to trade that information is extremely important. Successful investors are typically able to focus their energy on the right information and then apply it to a trading strategy. 

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