NTES re-rated at bearish (-2.25)
Tech Rating: -2.25
Tech ratings are 3 to -3 indicating bullish to bearish; a zero is neutral to cautionary.
This closes a bullish call which could have seen a return of 14.48% or better depending on your risk management.
The uptick after violating the bottom Bollinger could have been the last gasp for a bit. Our indicators are mostly negative with only moving average juxtaposition and our unpublished trend indicator still bullish – both of which are lagging indicators.
Not only are we in negative reading for our other indicators, nothing is yet in oversold territory.
Price and moving averages:
NetEase has closed below its short term moving average.
Short term moving average is currently above mid term, and above long term moving averages.
Mid term moving average is currently above long term
The relationship between price and moving averages is: neutral in short term, and bullish in mid-long term.
Bollinger Bands:
NTES has closed above bottom band by 9.7%.
Bollinger Bands are 48.4% wider than normal.
The large width of the bands suggest high volatility as compared to NTES's normal range. Therefore, the probability of volatility decreasing and prices entering (or remaining in) a trading range has increased for the near-term. The bands have been in this wide range for 1 bars. The probability of prices consolidating into a less volatile trading range increases the longer the bands remain in this wide range.
CCI is now in negative range and generated a cover short signal on prior close (short signal was the 24th).
MACD
Crossovers:
Currently MACD is bearish since it is trading below its signal line.
MACD crossed below its signal line 12 bars ago.
Since MACD crossed its moving average, NTES's price has decreased -1.71%
and has ranged from a high of117.036 to a low of101.68
MACD is not in an overbought/oversold range.
There have been no divergence signals within the last 5 periods.
**This commentary is for educational purposes only. It is not a recommendation to buy or sell. Use at your own risk.
About the Technical Rating Indicator
The Technical Rating Indicator combines established methods of technical analysis along with regression analysis and a weighting system based on signal strength to provide a technical rating. Note that none of the indicators use standard settings, and none of the settings have been optimized to fit a particular data set (avoiding in-sample bias).
The result is a clean, proprietary technical research rating system.
The Technical Rating Indicator is expressed in values ranging from -3 to +3.
A technical rating of -3 is issued when all individual indicators are exhibiting readings consistent with previous periods of negative prices (i.e. conditions are “bearish” for the stock price, based on historical analysis). A technical rating of +3 is issued when the individual indicators are exhibiting readings consistent with previous periods of positive price movement (i.e. conditions are “bullish” for the stock, based on historical analysis). Intermediate readings indicate a mix of signals from the inputs to the Technical Rating Indicator.
Disclosure: the firm does not currently hold a position in this stock and has no plans to create a long or short position over the next 5 business days.
0 comments:
Post a Comment