Sociedad Quimica Y Minera S.A. (SQM) have climbed higher over the course of the past week revealing positive upward momentum for the shares. In taking a look at recent performance, we can see that shares have moved 1.73% over the past week, -8.41% over the past 4-weeks, -21.87% over the past half year and -28.75% over the past full year.
When dealing with the volatility and unpredictability of the stock market, investors may have to learn how to deal with their emotions. There are many factors that can have a big impact on the portfolio. Maintaining discipline can be one of the most important factors. From time to time, investors will be overcome by fear during a large market selloff. On the other side, investors may become extremely excited during a widespread market move to the upside. When these situations occur, investors tend to make better decisions if they are able to keep emotions out of play and stick to the original plan. Buying and selling at the wrong time can lead to portfolio underperformance, and it may damage investor confidence in the future.
Investors may be tracking certain levels on shares of Sociedad Quimica Y Minera S.A. (SQM). The current 50-day Moving Average is 44.18, the 200-day Moving Average is 49.34, and the 7-day is noted at 41.32. 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. Sociedad Quimica Y Minera S.A. (SQM) currently has a 14-day Commodity Channel Index (CCI) of -16.40. 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 Sociedad Quimica Y Minera S.A. (SQM) is 25.47. 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 42.72, the 7-day is at 49.41, and the 3-day is spotted at 78.23 for Sociedad Quimica Y Minera S.A. (SQM).
Investors may be trying to decide if it is the right time to enter the equity market. Stocks have been performing well of late, and investors may be eager to catch the next potential move higher. When looking to put money into the stock market, investors might be working hard to create a strategy and choose specific stocks to add to the portfolio. Building a strategy can be tough, but sticking to a strategy can be even tougher. Sticking to the game plan when markets are in flux can greatly improve the investor’s chances of succeeding in the market.