Home / Daily News / Near-Term Bearish Signal Identified For CubeSmart (CUBE) Shares

 

CubeSmart (CUBE) shares are being placed on chartists radar as the recent share price of 30.63 is pushed below the balance step moving average.

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The balance step is a simple Moving Average calculated from last 5 Balance Points (MA/3),5) of the weekly period bar plotted in step formation on the daily chart. This chart is used to project 1 bar forward (one day). The weekly steps can be used to determine a near-term trend. When the price is above, this typically indicates a bullish trend. When the price is below the Balance Step, this generally spells a bearish trend.

There is no easy answer when attempting to address the tough question of how to best approach the equity market, especially when facing a turbulent investing climate. There are many different schools of thought when it comes to stock trading. Investors may have to first gauge their appetite for risk in order to build a solid platform on which to construct a legitimate strategy. The wealth of available information has made the road a bit smoother to travel for amateur investors. Making the transition to the next level is most likely on the minds of many dedicated investors. Tracking technicals and fundamentals may also help provide a roadmap to help separate the contenders from the pretenders. As we head into the second half of the year, it remains to be seen which way the market will lean. Investors may have to do all the necessary homework in order to find stocks that will thrive under any market conditions.

Investors will be closely tracking stock market movements over the next few months. As we break into the second part of the year, many will be researching what they did right and what they did wrong in the first half. Recent market action may have investors questioning if a major pullback is on the horizon, or if momentum will turn back to the upside. Investors will have to determine if any tweaks will need to be made to the portfolio. If the economic data continues to display optimism, investors may be able to confidently make some moves to help bolster returns. Over the next few quarters, investors will be hoping that modest gains can turn into major gains.

Traders may be trying to figure out whether it is a good time to enter or exit a position in CubeSmart (CUBE). 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 40.90. 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.

CubeSmart (CUBE) presently has a 14-day Commodity Channel Index (CCI) of -100.23. 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 CubeSmart (CUBE) is currently at 38.25, the 7-day stands at 42.67, and the 3-day is sitting at 50.11.

Taking a peek at some Moving Averages, the 200-day is at 32.77, and the 50-day is 32.81. 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. CubeSmart (CUBE)’s Williams Percent Range or 14 day Williams %R presently is at -80.82. 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.

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