Fresenius SE & Co KGaA (FRE.DE) AO Signal Trending Downward

The Awesome Oscillator for Fresenius SE & Co KGaA (FRE.DE) is showing a five day consistent downtrend, signaling building market momentum for the shares.  Author and trader Bill Williams created The Awesome Oscillator Indicator (AO) and outlined the theory and calculation in his book “New Trading Dimensions”.  The indicator shows the difference between two simple moving averages that can help define moving strength of the market. Bill Williams developed this indicator on the basis of earlier existed MACD and made a number of changes. The Awesome Oscillator subtracts a 34 period simple moving average (SMA) from a 5 period SMA. It illustrates what’s happening to the market driving force at the present moment.  The interpretation is similar to MACD including buying when the oscillator crosses through the zero line to the upside and selling when it crosses back below. Of course, this will result is many false signals in flat or choppy markets.  As with most indicators, the AO is best used alongside additional technical signals.

Traders may be trying to figure out whether it is a good time to enter or exit a position in Fresenius SE & Co KGaA (FRE.DE). 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. Currently, the 14-day ADX is 26.87. 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.

Fresenius SE & Co KGaA (FRE.DE) presently has a 14-day Commodity Channel Index (CCI) of -181.57. 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 for Fresenius SE & Co KGaA (FRE.DE) is currently at 27.56, the 7-day stands at 22.54, and the 3-day is sitting at 18.23.

Taking a peek at some Moving Averages, the 200-day is at 73.67, and the 50-day is 75.73. 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. Fresenius SE & Co KGaA (FRE.DE)’s Williams Percent Range or 14 day Williams %R presently is at -93.23. 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.

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