Treasury Wine Estates Limited (TWE.AX) Shares Churn Downward -4.35% For the Week

Treasury Wine Estates Limited (TWE.AX) have moved lower over the course of the past week revealing negative downward near-term momentum for the shares. In taking a look at recent performance, we can see that shares have moved -4.35% over the past week, 2.79% over the past 4-weeks, 6.04% over the past half year and 47.00% over the past full year.

Looking at the current landscape of the equity market, investors may be doing some bargain hunting for stocks to add to the portfolio. Many sharp investors will welcome temporary market dips which may provide plenty of buying opportunities. Being prepared for these types of opportunities can help the investor make quick decisions in the midst of a downturn. As we move closer to the close of the year, investors will be closely watching the next round of company earnings reports. Even if the individual investor chooses to trade conservatively during earnings, they can still do the necessary research and have stocks lined up to purchase when the time is right.   

Investors may be tracking certain levels on shares of Treasury Wine Estates Limited (TWE.AX). The current 50-day Moving Average is 17.86, the 200-day Moving Average is 16.93, and the 7-day is noted at 18.48. 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.

Traders may be relying in part on technical stock analysis. Treasury Wine Estates Limited (TWE.AX) currently has a 14-day Commodity Channel Index (CCI) of -92.78. Despite the name, CCI can be used on other investment tools such as stocks. The CCI was designed to typically stay within the reading of -100 to +100. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction. On the other hand, a reading of -100 would imply that the stock is oversold and possibly set for a rally.

At the time of writing, the 14-day ADX for Treasury Wine Estates Limited (TWE.AX) is 14.00. Many technical chart analysts believe that an ADX value over 25 would suggest a strong trend. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal. The ADX is typically plotted along with two other directional movement indicator lines, the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI). Some analysts believe that the ADX is one of the best trend strength indicators available.

The Relative Strength Index (RSI) is one of multiple popular technical indicators created by J. Welles Wilder. Wilder introduced RSI in his book “New Concepts in Technical Trading Systems” which was published in 1978. RSI measures the magnitude and velocity of directional price movements. The data is represented graphically by fluctuating between a value of 0 and 100. The indicator is computed by using the average losses and gains of a stock over a certain time period. RSI can be used to help spot overbought or oversold conditions. An RSI reading over 70 would be considered overbought, and a reading under 30 would indicate oversold conditions. A level of 50 would indicate neutral market momentum. The 14-day RSI is currently sitting at 47.15, the 7-day is at 37.95, and the 3-day is spotted at 21.66 for Treasury Wine Estates Limited (TWE.AX).

One of the biggest mistakes that can plague the individual investor is not setting up an overall investment plan. Investors may want to start out be setting up an outline of overall goals. Having goals can eventually make the day to day investing decisions at little bit easier over time. Once a plan is in place, investors can then spend more time focusing on the proper stocks to add to the portfolio. Dedicating time for extensive stock research may not be easy, but it may put the investor in a better position. Some investors will go to greater lengths, such as making sure that they have a good reason behind every buy or sell decision. This process may seem unnecessary to some, but it may help the investor stay focused when the market gets choppy and tough decisions need to be made.