Trending Higher or Stalling Out? Stock Update on iShares Edge MSCI World Size Factor UCITS ETF (IWFS.L) – The Stock Rover

In the latest session, iShares Edge MSCI World Size Factor UCITS ETF (IWFS.L) moved 5.75%, touching a recent bid of 2440.50.  Current price levels place the shares above the rising trendline.  

Charles Dow defined an uptrend as a situation in which each successive rally closes higher than the previous rally high, and each successive rally low also closes higher than the previous rally low. In other words, an uptrend has a pattern of rising peaks and troughs. The opposite situation, with successively lower peaks and troughs, defines a downtrend. Dow’s definition has withstood the test of time and still forms the cornerstone of trend analysis.

These lines represents the trend of the market in a way which is visually appealing. As long as the price remains above the rising line, uptrend will be intact. If the price breaks below the line and closes below the line, the trend changes to down trend trend or side trend.

One benefit of trendlines is they help distinguish emotional decisions (“I think it’s time to sell…”) from analytical decisions (“I will hold until the current rising trendline is broken”). Another benefit of trendlines is that they almost always keep you on the “right” side of the market. When using trendlines, it’s difficult to hold a security for very long when prices are falling just as it’s hard to be short when prices are rising–either way the trendline will be broken.

Taking a glance from a technical standpoint, iShares Edge MSCI World Size Factor UCITS ETF (IWFS.L) presently has a 14-day Commodity Channel Index (CCI) of 108.19. 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.

The 14-day ADX for iShares Edge MSCI World Size Factor UCITS ETF (IWFS.L) is currently sitting at 12.81. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would signal a very strong trend, and a value of 75-100 would indicate an extremely strong trend. The ADX is a technical indicator developed by J. Welles Wilder used to determine the strength of a trend. The ADX is often used along with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of the trend.

Moving average indicators are used widely for stock analysis. Many traders will use a combination of moving averages with different time frames to help review 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. Narrowing in on Moving Averages, the 200-day for iShares Edge MSCI World Size Factor UCITS ETF (IWFS.L) is at 2151.96, the 50-day is 2358.21, and the 7-day is resting at 2429.54. The RSI is computed based 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. The 14-day RSI is presently standing at 64.30, the 7-day sits at 67.86, and the 3-day is resting at 71.45.

Investors may be watching other technical indicators such as 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. iShares Edge MSCI World Size Factor UCITS ETF (IWFS.L)’s Williams %R presently stands at 0.00. 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.