Calamos Convertible Opportunities and Income Fund (CHI)’s MACD Histogram reading is currently above the zero line, indicating a positive chart trend for the shares. Shares recently touched 10.09 on a recent bid, moving -0.22 in the most recent session.
Created by Thomas Aspray in 1986, the MACD Histogram is a visual indicator of the difference between the MACD line and the Signal line, which is a default 9 period ema of the MACD line. The histogram is an oscillator that moves above and below the zero line, just as the MACD line does. Keep in mind when using this oscillator, that it takes four mathematical steps from price itself to create the 4th derivative, the histogram: Price => two ema averages => MACD line = Signal line => Histogram. Which means it lags price quite a bit. But like all derivatives of price, it’s much smoother than price itself.
If the MACD is above zero it helps confirm an uptrend; below zero and it helps confirm a downtrend. Zero line and Signal line crossovers are used as trade signals to enter and exit trending trades. Losing trade signals occur when crossovers occur in rapid succession due to choppy price action. Divergence shows when momentum is slowing, but it doesn’t indicate when a reversal will occur (if it occurs). Combing different elements of each strategy makes the indicator more useful, such as taking buy signals following a bullish divergence. Using price and trend analysis will aid in determining which signals to take, such as only taking buy signals when a long-term uptrend is in place.
Dedicated investors tend to spend a lot of time trying to decipher the correct procedure for beating the stock market. This may involve figuring out a proper strategy, and deciding which stocks to start with when constructing a portfolio. Building a portfolio does not have to be a frantic race. In fact, not rushing into things may end up putting the investor in a good position to succeed. There are times when tough decisions need to be made when dealing with the equity market. Spending enough time to assess all the possibilities before making an investing decision may pay off down the road. As most investors know, there is no magic formula for coming out a winner in the stock market. Acquiring the most possible knowledge about the markets and individual stocks can play a vital role in the long-term success of the individual investor.
Taking a further look at some technicals, shares of Calamos Convertible Opportunities and Income Fund (CHI) have a 200-day moving average of 11.41. The 50-day is 10.41, and the 7-day is sitting at 9.99. Using a wider time frame to assess the moving average such as the 200-day, may help block out the noise and chaos that is often caused by daily price fluctuations. In some cases, MA’s may be used as strong reference points for spotting support and resistance levels. Employing the use of the moving average for technical equity analysis is still highly popular among traders and investors. The moving average can be used as a reference point to assist with the discovery of buying and selling opportunities.
Calamos Convertible Opportunities and Income Fund (CHI)’s Williams Percent Range or 14 day Williams %R currently sits at -30.67. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would point to an overbought situation. A reading from -80 to -100 would signal an oversold situation. The Williams %R was developed by Larry Williams. This is a momentum indicator that is the inverse of the Fast Stochastic Oscillator.
Calamos Convertible Opportunities and Income Fund (CHI) currently has a 14-day Commodity Channel Index (CCI) of 75.11. Active investors may choose to use this technical indicator as a stock evaluation tool. Used as a coincident indicator, the CCI reading above +100 would reflect strong price action which may signal an uptrend. On the flip side, a reading below -100 may signal a downtrend reflecting weak price action. Using the CCI as a leading indicator, technical analysts may use a +100 reading as an overbought signal and a -100 reading as an oversold indicator, suggesting a trend reversal.
Currently, the 14-day ADX for Calamos Convertible Opportunities and Income Fund (CHI) is sitting at 31.55. 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 RSI is currently at 48.98, the 7-day stands at 55.58, and the 3-day is sitting at 51.3.
Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.