iShares MSCI World GBP Hedged UCITS ETF (IGWD.L): Chartists Are Taking Note

Investors are paying close attention to the charts of iShares MSCI World GBP Hedged UCITS ETF (IGWD.L), as the shares are holding above the MACD Histogram zero line.  The equity recently moved -7.46, touching 4924.54 on a recent tick. 

MACD-Histogram bridges the time gap between the price movement and MACD. It offers a deeper insight into the balance of power between so called bulls and bears than the original MACD. It is one of the best tools available to a chartist because it shows not only who has control over the market but also their magnitude of strength.

The difference is represented by vertical lines in a series. The interesting fact is that like MACD, MACD-Histogram also fluctuates above and below the zero line. Hence, it is also known as an “oscillator”. In other words it is just the hide and seek between the fast and slow lines. If the fast line is above the slow line, MACD-Histogram is positive and plotted above the zero line. On the other hand if the fast line is below the slow line, MACD-Histogram is negative and plotted below the zero line. 

Taking a further look at some technicals, shares of iShares MSCI World GBP Hedged UCITS ETF (IGWD.L) have a 200-day moving average of 4652.90. The 50-day is 4875.58, and the 7-day is sitting at 4908.85. 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.

iShares MSCI World GBP Hedged UCITS ETF (IGWD.L)’s Williams Percent Range or 14 day Williams %R currently sits at -20.46. 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.

iShares MSCI World GBP Hedged UCITS ETF (IGWD.L) currently has a 14-day Commodity Channel Index (CCI) of 130.60. 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 iShares MSCI World GBP Hedged UCITS ETF (IGWD.L) is sitting at 13.69. 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 58.98, the 7-day stands at 61.37, and the 3-day is sitting at 64.35.

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