Investors Trying to Find the Black: Mass Index Update on Mercer Intl Inc (MERC)

The Mass Index Volatility reading for Mercer Intl Inc (MERC) has dropped below 26.5, indicating a potential move is ahead for the shares.  The Mass Index is a volatility indicator developed by Donald Dorsey and discussed in the June 1992 issue of Technical Analysis of Stocks & Commodities. By analyzing the narrowing and widening of trading ranges, the indicator identifies potential reversals based on market patterns that aren’t often considered by technical analysts largely focused on singular price and volume movements.  The Mass Index indicator uses the difference between the high and low in a given interval to spot potential price reversals. The main assumption is that prices tend to reverse when ranges widen beyond historical averages. Since this difference is constantly changing (ranges are always widening and narrowing), traders can use the Mass Index to generate trade signals, which occur when the index line (typically 25 periods) moves above 27 and then drops below 26.5.

Investors are keeping a close eye on levels of Mercer Intl Inc (MERC). The Average Directional Index or ADX is a technical analysis indicator used to describe if a market is trending or not trending. The ADX alone measures trend strength but not direction. Using the ADX with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) may help determine the direction of the trend as well as the overall momentum. Many traders will use the ADX alongside other indicators in order to help spot proper trading entry/exit points. After a recent check, the 14-day ADX is 39.92. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would signal a very strong trend, and a value of 75-100 would indicate an extremely strong trend.

Mercer Intl Inc (MERC) presently has a 14-day Commodity Channel Index (CCI) of -0.48. 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. The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of stock price movements. The RSI was developed by J. Welles Wilder, and it oscillates between 0 and 100. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70. RSI can be used to detect general trends as well as finding divergences and failure swings. The 14-day RSI is currently at 33.90, the 7-day stands at 36.60, and the 3-day is sitting at 33.21.

Taking a peek at some Moving Averages, the 200-day is at 15.49, and the 50-day is 14.97. Dedicated investors may be looking to employ another tool for doing technical stock analysis. The Williams Percent Range or Williams %R is a technical indicator that was designed to measure overbought and oversold market conditions. The Williams %R indicator helps show the relative situation of the current price close to the period being observed. Mercer Intl Inc (MERC)’s Williams Percent Range or 14 day Williams %R presently is at -66.67. In general, if the reading goes above -20, the stock may be considered to be overbought. Alternately, if the indicator goes under -80, this may show the stock as being oversold.