Lumentum Holdings Inc (LITE) Trending Upward Near-term

Lumentum Holdings Inc (LITE) market momentum is building as the Awesome Oscillator (AO) is showing an uptrend in the name over the past 5 bars.  Awesome Oscillator shows the difference in between the 5 SMA and 34 SMA. If to be precise, 5 SMA of midpoints is subtracted from 34 SMA of midpoints which allows to see the market momentum.  Awesome Oscillator buy signals are created when the indicator crosses from below 0 to above 0. The oscillator changes from green (upward movement) to red (downward movement) and back to green again.  The oscillator was developed by Bill Williams and outlined in his book titled “New Trading Dimensions”.

Let’s take a closer look at some alternative technical levels for Lumentum Holdings Inc (LITE). The 14-day RSI is presently at 50.41, the 7-day is 52.03, and the 3-day is spotted at 45.76. 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.

In terms of CCI levels, Lumentum Holdings Inc (LITE) currently has a 14-day Commodity Channel Index (CCI) of 64.60. Investors and traders may use this indicator to help spot price reversals, price extremes, and the strength of a trend. Many investors will use the CCI in conjunction with other indicators when evaluating a trade. The CCI may be used to spot if a stock is entering overbought (+100) and oversold (-100) territory. The 14-day ADX is 17.11. Many technical chart analysts believe that an ADX reading over 25 would suggest a strong trend. A level 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.

Investors may be studying other technical indicators like the Williams Percent Range or Williams %R. The Williams %R is a momentum indicator that helps measure oversold and overbought levels. This indicator compares the closing price of a stock in relation to the highs and lows over a certain time period. A common look back period is 14 days. Lumentum Holdings Inc (LITE)’s Williams %R presently stands at -39.29. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would indicate an overbought situation. A reading from -80 to -100 would indicate an oversold situation. Looking at some moving average levels on shares of Lumentum Holdings Inc (LITE), the 200-day is at 50.26, the 50-day is 58.73, and the 7-day is sitting at 57.55. Moving averages can help identify trends and price reversals. They may also be used to help spot support and 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.

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