Valeant Pharmaceuticals International Inc (VRX.TO) AO Seeing a Consistent Downtrend

Valeant Pharmaceuticals International Inc (VRX.TO) market momentum is building as the Awesome Oscillator (AO) is showing a down-trend 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, and sell signals when reversed. 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”. 

Traders may be trying to figure out whether it is a good time to enter or exit a position in Valeant Pharmaceuticals International Inc (VRX.TO). 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 31.27. 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.

Valeant Pharmaceuticals International Inc (VRX.TO) presently has a 14-day Commodity Channel Index (CCI) of -185.35. 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 Valeant Pharmaceuticals International Inc (VRX.TO) is currently at 37.58, the 7-day stands at 22.14, and the 3-day is sitting at 11.63.

Taking a peek at some Moving Averages, the 200-day is at 19.18, and the 50-day is 19.75. 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. Valeant Pharmaceuticals International Inc (VRX.TO)’s Williams Percent Range or 14 day Williams %R presently is at -99.09. 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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