Technical Views: Tracking the Numbers on Shares of Canadian Pacific Railway Ltd (CP)

Looking further at shares of Canadian Pacific Railway Ltd (CP), we have seen that the Ultimate Oscillator reading is currently below 40. Traders tracking this signal may be watching to see if the stock may possibly be heading into oversold territory. 

Investors may be wondering which way stock market momentum will shift in the second half of the year. If the economic landscape shifts and markets start to go south, investors may need to have an action plan in place. Keeping the bigger picture in mind may help investors when markets are struggling. Short-term developments may cause the investor to lose confidence in certain holdings. Keeping the focus on stock analysis and the overall economic picture may help investors see through the trees. Sometimes the calm, cool, and collected approach will help settle the mind during turbulent market conditions. Being able to stay emotionally unattached to a stock or sector may assist the investor with making tricky buying or selling decisions. Being disciplined is an attribute that many successful investors share. Being prepared for many different scenarios can help ease the burden when those tough portfolio decisions have to be made.

The 14-day ADX for Canadian Pacific Railway Ltd (CP) is currently 31.30. Many chart analysts believe that an ADX reading over 25 would suggest a strong trend. A reading under 20 would suggest no trend, and a reading from 20-25 would suggest that there is no clear trend signal. The ADX was created by J. Welles Wilder to help determine how strong a trend is. In general, a rising ADX line means that an existing trend is gaining strength. The opposite would be the case for a falling ADX line.

Canadian Pacific Railway Ltd (CP)’s Williams Percent Range or 14 day Williams %R is sitting at -16.03. Typically, if the value heads above -20, the stock may be considered to be overbought. On the flip side, if the indicator goes under -80, this may signal that the stock is oversold.

In terms of CCI levels, Canadian Pacific Railway Ltd (CP) currently has a 14-day Commodity Channel Index (CCI) of 199.29. 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.

Canadian Pacific Railway Ltd (CP) currently has a 50-day Moving Average of 283.70, the 200-day Moving Average is 253.10, and the 7-day is noted at 297.26. Following moving averages with different time frames may help offer a wide variety of stock information. A longer average like the 200-day may serve as a smoothing tool when striving to evaluate longer term trends. On the flip side, a shorter MA like the 50-day may help with identifying shorter term trading signals. Moving averages may also function well as a tool for determining support and resistance levels.

Tracking the RSI levels for Canadian Pacific Railway Ltd (CP), the 3-day RSI stands at 90.92, the 7-day sits at 75.84 and the 14-day (most common) is at 69.55. The RSI, or Relative Strength Index is a popular oscillating indicator among traders and investors. The RSI operates in a range-bound area with values between 0 and 100. When the RSI line moves up, the stock may be experiencing strength. The opposite is the case when the RSI line is heading lower. Different time periods may be used when using the RSI indicator. The RSI may be more volatile using a shorter period of time. Many traders keep an eye on the 30 and 70 marks on the RSI scale. A move above 70 is widely considered to show the stock as overbought, and a move below 30 would indicate that the stock may be oversold. Traders may use these levels to help identify stock price reversals.

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