Thanks to the recent gains, the 14-day RSI, a momentum indicator
, is approaching overbought levels.
The moving average convergence-divergence momentum indicator
has declined bearishly below the signal line and zero.
In technical analysis, ADX is used to determine when price is trending strongly or when the trend is your friend while RSI is a momentum indicator
used to identify overbought or oversold conditions.
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DWTR implements an unemotional approach, focusing on relative strength, a momentum indicator
that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset, as a longer term strategy that may help reduce potential turnover, but is also adaptive enough to rotate a portfolio on a monthly basis as the market dictates.
The FTSE 100's slide to its lowest closing level in 2014 on Thursday left it looking more "oversold" on its 14-day Relative Strength Index, a technical momentum indicator
, than it has in more than three years.
The first indicator is "level of activity" and the second is "momentum." (6) These two indicators jointly explain 81 percent of the variability of the 24 labor market variables, with the activity indicator and momentum indicator
explaining 58 percent and 23 percent, respectively.
Resistance could come into play at this level, he said, and the 14-day relative strength index (RSI), a momentum indicator
, is moving back up towards overbought territory.
"The seasonally adjusted three-month moving average annualized momentum indicator
also points to ebbing of inflationary pressures.
Abu Dhabi's benchmark, which closed at 2 450 on Wednesday, may target 2 462, with a bullish divergence on the relative strength index, a commonly used price momentum indicator