Shares of Puretech Health Plc (PRTC.L) are heading in a near-term positive direction as the most recent close of the company has stayed above the Balance Step. The Balance Step reading takes into account the last 5 balance points of the weekly period plotted in step formation on a daily chart.
Some investors may be struggling after adding the wrong stocks to the portfolio. Creating a specific plan for investing may help turn the ship around. The stock market is still producing plenty of green arrows, and investors need to be able to capitalize. It is quite reasonable to be optimistic about the investment environment heading into the second half of the year. The next couple of weeks may be the perfect time for investors to put the pedal down and try to develop a strategy that will beat the market over the next quarter. Most investors realize that there are no certainties when it comes to equity investing. It is never a guarantee that a stock or an index will go up or down from one day to the next. Investors who prepare themselves for any scenario should be in a much better place than those who don’t.
At times, stock market volatility can wreak havoc on investors. When the market becomes highly volatile, investors may get the jitters and think they need to rush to action. In the heat of the moment, it can be tricky to see the clear skies in the distance. Investors may be best served at times to just let the cards fall where they may and not try to be a hero and drastically change the portfolio. Following a solid plan may allow investors to lay off the gas when times get tough. If the research is well done and the plan is in place, sticking to the plan might be the call. Of course nobody wants to see a significant drop in the value of stocks that they own. Being able to see the overall picture when the markets become turbulent may allow the investor to move forward with confidence.
Traders may be trying to figure out whether it is a good time to enter or exit a position in Puretech Health Plc (PRTC.L). Diving into some additional technical levels might help get a clearer picture. 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 39.03. 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.
Puretech Health Plc (PRTC.L) presently has a 14-day Commodity Channel Index (CCI) of 98.94. 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 Puretech Health Plc (PRTC.L) is currently at 68.88, the 7-day stands at 70.34, and the 3-day is sitting at 82.71.
Taking a peek at some Moving Averages, the 200-day is at 194.91, and the 50-day is 250.04. 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. Puretech Health Plc (PRTC.L)’s Williams Percent Range or 14 day Williams %R presently is at -43.86. 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.
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.