What Do The Technicals Boil Down To For Wesco International (WCC)?

The recent price of 53.80 for shares of Wesco International (WCC) has put the price level above the Balance Step, indicating a near-term bullish pattern developing.  Calculated from the last five balance points, the Balance Step indicator can help determine whether a bullish or bearish trend is developing near-term.

Investors may be wondering how to tackle the markets at current levels. Many investors may feel like they have missed out on the markets getting to where they are today. It may be a case of missed trades or being too cautious, but a stellar forward thinking strategy may be just what is needed to get back on track. Studying various sectors may help provide some insight on where to go from here. Investors may become very familiar and comfortable with a certain sector, and they may be completely missing out on opportunities from other fast growing sectors. Investors may also need to take a long-term approach which may include creating a diversified portfolio that takes many different factors into consideration. With the enormous amount of uncertainty that follows the global investing world on a daily basis, it may be helpful for investors to be able to keep their emotions in check. Studying the hard data may prove to be very useful when trying to separate truth from fiction in the equity markets.

The direction of stock market moves in the short-term are highly unpredictable. Many investors will be tempted to ride the wave whether the trend is buying or selling. Fearful investors may make hasty decisions such as panic buying or selling. Investors may feel compelled to buy stocks after a major run higher. This can be related to the fear or missing out. On the other end, investors may be quick to sell quality stocks when the market is in the midst of a broad sell-off. This behavior often translates into falling into the trap of buying high and selling low. 

Investors may be taking a look at some additional technical numbers on shares of Wesco International (WCC) in order to get a fuller picture. The 14-day RSI is currently spotted at 51.17, the 7-day is at 48.46, and the 3-day is sitting at 28.23. 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.

In terms of CCI levels, Wesco International (WCC) currently has a 14-day Commodity Channel Index (CCI) of 45.67. 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 16.97. 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. Wesco International (WCC)’s Williams %R presently stands at -38.60. 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 Wesco International (WCC), the 200-day is at 54.99, the 50-day is 53.82, and the 7-day is sitting at 54.57. 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.

One of the biggest mistakes that can plague the individual investor is not setting up an overall investment plan. Investors may want to start out be setting up an outline of overall goals. Having goals can eventually make the day to day investing decisions at little bit easier over time. Once a plan is in place, investors can then spend more time focusing on the proper stocks to add to the portfolio. Dedicating time for extensive stock research may not be easy, but it may put the investor in a better position. Some investors will go to greater lengths, such as making sure that they have a good reason behind every buy or sell decision. This process may seem unnecessary to some, but it may help the investor stay focused when the market gets choppy and tough decisions need to be made.