Shares Seesawing on Volume: POWER FINANCE CORPORATION LTD. (PFC.BO)

Shares of POWER FINANCE CORPORATION LTD. (PFC.BO) have seen the needle move 3.55% or 4.45 in the most recent session. The BSE listed company saw a recent bid of $129.85 on 250827 volume. 

One of the staple principles for investing is buy low and sell high. While this may sound obvious, many investors end up doing just the opposite. When dealing with the stock market, investors often have to be careful not to let their irrational side take over when making decisions. Investors may get caught up in the flurry when stocks are skyrocketing. The temptation to get on board and be part of the ride can lead to some ill-planned moves. Focusing on near-term movements might be included in the game plan for some, but for others, this may be distracting from the bigger picture and long-term plan. Stocks that become widely publicized and popular in the media may not be the right addition to the individual investor’s portfolio. Conducting the due diligence on any position can help the investor make sure that they are getting in at a good time and price.

POWER FINANCE CORPORATION LTD. (PFC.BO) has a 14-day ATR of 5.17. 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.

Currently, the 14-day ADX for POWER FINANCE CORPORATION LTD. (PFC.BO) is sitting at 23.97. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would identify a very strong trend, and a value of 75-100 would lead to an extremely strong trend. ADX is used to gauge trend strength but not trend direction. Traders often add the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of a trend.

The RSI, or Relative Strength Index, is a widely used technical momentum indicator that compares price movement over time. The RSI was created by J. Welles Wilder who was striving to measure whether or not a stock was overbought or oversold. The RSI may be useful for spotting abnormal price activity and volatility. The RSI oscillates on a scale from 0 to 100. The normal reading of a stock will fall in the range of 30 to 70. A reading over 70 would indicate that the stock is overbought, and possibly overvalued. A reading under 30 may indicate that the stock is oversold, and possibly undervalued. After a recent check, the 14-day RSIfor POWER FINANCE CORPORATION LTD. (PFC.BO) is currently at 47.68, the 7-day stands at 47.32, and the 3-day is sitting at 64.90.

Looking further at additional technical indicators we can see that the 14-day Commodity Channel Index (CCI) for POWER FINANCE CORPORATION LTD. (PFC.BO) is sitting at -52.90. CCI is an indicator used in technical analysis that was designed by Donald Lambert. 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 CCI reading closer to +100 may indicate more buying (possibly overbought) and a reading closer to -100 may indicate more selling (possibly oversold).

Moving averages can help spot trends and price reversals. They may also be used to help find support or resistance levels. Moving averages are considered to be lagging indicators meaning that they confirm trends. A certain stock may be considered to be on an uptrend if trading above a moving average and the average is sloping upward. On the other side, a stock may be considered to be in a downtrend if trading below the moving average and sloping downward. Shares of POWER FINANCE CORPORATION LTD. (PFC.BO) have a 7-day moving average of 127.84. Taking a glance at the relative strength indictor, we note that the 14-day RSI is currently at 47.68, the 7-day stands at 47.32, and the 3-day is sitting at 64.90.

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