Shares of Newstrike Resources Ltd (NWKRF) are nearing some key technical levels as the Rank Correlation indicator has trending higher over the past few sessions, nearing potential overbought territory. Crossing the 80 mark would suggest that a chance of a reversal is increasing.
The Rank Correlation Index (RCI) is based on an analysis algorithm by Charles Spearman. It uses a combination of price change data and time change data to identify potential changes in market sentiment, thereby exposing turning points. Zero crossings are seen as buy and sell signals, with tops and bottoms yielding overbought and oversold information.
Investors also might be looking to track the ATR or Average True Range of the stock. Currently, Newstrike Resources Ltd (NWKRF) has a 14-day ATR of 0.20. The Average True Range is an investor tool used to measure stock volatility. The ATR is not used to figure out price direction, just to measure volatility. The ATR is an indicator developed by J. Welles Wilder. Wilder has developed multiple indicators that are still quite popular in today’s investing landscape. The general interpretation of the ATR is the higher the ATR value, the higher the volatility.
The Williams Percent Range or Williams %R is another technical indicator worth checking out. Newstrike Resources Ltd (NWKRF) currently has a 14 day Williams %R of -71.43. The Williams %R fluctuates between 0 and -100 measuring whether a security is overbought or oversold. The Williams %R is similar to the Stochastic Oscillator except it is plotted upside-down. Levels above -20 may indicate the stock may be considered is overbought. If the indicator travels under -80, this may signal that the stock is oversold. Chart analysts may also use the indicator to project possible price reversals and to define trends.