22 September, 2017
Shares of IAMGOLD Corp (TSE:IMG) traded up 1.83% during trading on Thursday, hitting $7.81.
One of the basic tenets put forth by Charles Dow in the Dow Theory is that security prices do trend. The ADX alone was created to measure trend strength. Rising trends are defined by a trendline that is drawn between two or more troughs (low points) to identify price support.
A principle of technical analysis is that once a trend has been formed (two or more peaks/troughs have touched the trendline and reversed direction) it will remain intact until broken. Three research analysts have rated the stock with a hold rating and four have given a buy rating to the company. Another benefit of trendlines is that they nearly always keep you on the "right" side of the market. The ADX is typically used in conjunction with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to help spot trend direction as well as trend strength. The RSI may be useful for spotting abnormal price activity and volatility. The normal reading of a stock will fall in the range of 30 to 70. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a certain period of time. Typically, the CCI oscillates above and below a zero line.
IAMGOLD Corp (TSE:IMG) (NYSE:IAG) had its target price cut by National Bank Financial from C$10.00 to C$9.00 in a report published on Thursday, September 14th. In general, an ADX value from 0-25 would indicate an absent or weak trend. Although it was originally intended for commodity traders to help identify the start and finish of market trends, it is frequently used to analyze stocks as well. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal. A value of 50-75 would identify a very strong trend, and a value of 75-100 would lead to an extremely strong trend. Active investors may choose to use this technical indicator as a stock evaluation tool. When combined with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI), it can help decipher the trend direction as well. They may be trying to figure out which companies look like they are going to be strong over the next few quarters. The firm has a 50 day moving average price of $7.60 and a 200 day moving average price of $6.35. The RSI is computed based on the speed and direction of a stock's price movement. Taking a glance at the relative strength indictor, we note that the 14-day RSI is now at 35.85, the 7-day stands at 33.42, and the 3-day is sitting at 21.96. At the time of writing, the 14-day ADX for Rogers Communications Inc. After a recent check, the 14-day RSI is now at 59.71, the 7-day stands at 56.17, and the 3-day is sitting at 32.47.
Investors may be watching other technical indicators such as the Williams Percent Range or Williams %R. When the dust settles, it may be much easier to determine whether a stock is worth buying or if it should be sold. The Williams %R is a momentum indicator that helps measure oversold and overbought levels. Presently, the 14 day Williams %R is -95.24. The RSI oscillates on a scale from 0 to 100. IAMGOLD Corp presently has an average rating of Buy and a consensus target price of C$8.25. A reading from -80 to -100 would indicate an oversold situation.
