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Cognizant Tech Sol (CTSH): PPOH Line Above Zero



Monitoring the technical signals for Cognizant Tech Sol (CTSH), we have recently viewed the Percentage Price Oscillator Histogram line above zero. Traders may be using a PPOH reading above zero as a buy indicator.

With the stock market still riding high, bear market scenarios may not be at the forefront of the average investor’s mind. There are plenty of professionals out there that are predicting that the markets will be turning south in the near future. There are others who believe that the bulls are still in control, and they will be leading the charge higher over the next few months. Nobody knows for sure which scenario will play out, but being ready for any market situation may turn out to be a portfolio savior in the long-term. Any time the stock market drops sharply or sees sustained losses, investors may start to worry. These declines are usually followed by extreme headlines from financial news outlets. It is important to remember that corrections are a normal part of market cycles. Being able to control panic and pessimism may be a great skill for the investor to use when times get tough. Knowing exactly what stocks are in the portfolio can help make unsettling market conditions bearable for investors. If the hard research has been done and the plan is in motion, there may not be any need to second guess and cause more problems before things turn around and smooth out.

Sharp investors may be looking to examine the Williams Percent Range or Williams %R. Developed by Larry Williams, this indicator helps spot overbought and oversold market conditions. The Williams %R shows how the current closing price compares to previous highs/lows over a specified period. Cognizant Tech Sol (CTSH)’s Williams Percent Range or 14 day Williams %R is sitting at -13.82. 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.

Keeping an eye on Moving Averages, the 50-day is 66.66, the 200-day is at 74.59, and the 7-day is 66.38 for Cognizant Tech Sol (CTSH). Moving averages have the ability to be used as a powerful indicator for technical stock analysis. Following multiple time frames using moving averages can help investors figure out where the stock has been and help determine where it may be possibly going. The simple moving average is a mathematical calculation that takes the average price (mean) for a given amount of time.

We can also take a look at the Average Directional Index or ADX of the stock. For traders looking to capitalize on trends, the ADX may be an essential technical tool. The ADX is used to measure trend strength. ADX calculations are made based on the moving average price range expansion over a specified amount of time. ADX is charted as a line with values ranging from 0 to 100. The indicator is non-directional meaning that it gauges trend strength whether the stock price is trending higher or lower. The 14-day ADX is 19.35. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would indicate a very strong trend, and a value of 75-100 would signify an extremely strong trend.

Cognizant Tech Sol (CTSH) currently has a 14-day Commodity Channel Index (CCI) of 98.57. Active investors may choose to use this technical indicator as a stock evaluation tool. Used as a coincident indicator, the CCI reading above +100 would reflect strong price action which may signal an uptrend. On the flip side, a reading below -100 may signal a downtrend reflecting weak price action. Using the CCI as a leading indicator, technical analysts may use a +100 reading as an overbought signal and a -100 reading as an oversold indicator, suggesting a trend reversal.

Traders may also be paying close attention to RSI levels on shares of Cognizant Tech Sol (CTSH). The current 14-day RSI is presently sitting at 56.70, the 7-day is 65.01, and the 3-day is 62.95. 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.

Investors might be looking at their stock holdings and trying to gauge which ones will break out to new highs. Many investors will keep a close eye on stocks that are trading near popular marks such as the 52-week high. Stocks trading near 52-week lows also tend to garner additional attention. When a stock is flirting with a new 52-week high, investors may have to decide whether to cash in to lock in profits or wait to see if a breakthrough is going to happen. Companies that are teetering near the 52-week low may be worth taking a look at. Studying the fundamentals may show that the stock should be performing better than it is. This might be the time to think about purchasing shares that for whatever reason may have fallen out of favor with investors. Crunching the numbers and doing full analysis of stocks that have been trending down may help lead to some discoveries that could turn out to be highly valuable if and when the momentum shifts to the upside.



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