Komatsu Ltd ADR (KMTUY) shares have sparked the interest of some chartists as the Money Flow Index has climbed above 60, potentially heading for key 70 levels. The Money Flow Index is an indicator that utilizes the volume and volatility of an asset to determine the buying or selling pressure of an asset. The indicator was developed by Avrum Soudack and Gene Quong as a volume-weighted variation of the RSI.
The Money Flow Index is calibrated from 0 to 100, and creates a money flow ratio (Positive Money Flow to Negative Money Flow) over a time period. This money flow ratio is what is pushed into an RSI formula to create a momentum indicator. Being a momentum indicator, the Money Flow Index (MFI) is capable evaluating overbought and oversold market conditions, using values of 70-80 and above for overbought conditions and 20 and below for oversold situations.
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Investors might be interested in taking a closer look at additional stock technical levels. After a recent check, Komatsu Ltd ADR (KMTUY) has a 14-day ATR of 0.8. The average true range indicator was created by J. Welles Wilder in order to measure volatility. The ATR may help traders to determine the strength of a breakout or reversal in price. It is important to mention that the ATR was not designed to calculate price direction or to predict future prices.
Currently, the 14-day ADX for Komatsu Ltd ADR (KMTUY) is sitting at 16.49. 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.
Checking in on some other technical levels, the 14-day RSI is currently at 39.85, the 7-day stands at 33.67, and the 3-day is sitting at 17.45. Many investors look to the Relative Strength Index (RSI) reading of a particular stock to help identify overbought/oversold conditions. The RSI was developed by J. Welles Wilder in the late 1970’s. Wilder laid out the foundation for future technical analysts to further investigate the RSI and its relationship to underlying price movements. Since its inception, RSI has remained very popular with traders and investors. Other technical analysts have built upon the work of Wilder. The 14-day RSI is still a widely popular choice among technical stock analysts.
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. Komatsu Ltd ADR (KMTUY)’s Williams %R presently stands at -76.01. 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.
Taking a closer look from a technical standpoint, Komatsu Ltd ADR (KMTUY) presently has a 14-day Commodity Channel Index (CCI) of -74.35. 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.
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