ADX in View on Shares of Texas Capital BancShares Inc. (TCBI)

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Avid traders are likely tracking technical levels on shares of Texas Capital BancShares Inc. (TCBI). A favorite indicator of technical analysts is the Average Directional Index or ADX. 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. At the time of writing, the 14-day ADX for Texas Capital BancShares Inc. (TCBI) is standing at 39.32. 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.

Another technical indicator to examine is 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. Texas Capital BancShares Inc. (TCBI)’s Williams Percent Range or 14 day Williams %R is sitting at -29.89. 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.

The RSI, or Relative Strength Index, is a commonly used technical momentum indicator that compares price movement over time. The RSI was created by J. Welles Wilder who was striving to measure whether or not a stock was overbought or oversold. The RSI may be useful for spotting abnormal price activity and volatility. The RSI oscillates on a scale from 0 to 100. The normal reading of a stock will fall in the range of 30 to 70. A reading over 70 would indicate that the stock is overbought, and possibly overvalued. A reading under 30 may indicate that the stock is oversold, and possibly undervalued. After a recent check, the 14-day RSI is currently at 67.94, the 7-day stands at 59.2, and the 3-day is sitting at 43.37.

Taking a look at another technical level, Texas Capital BancShares Inc. (TCBI) presently has a 14-day Commodity Channel Index (CCI) of 18.12. 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.

Moving average indicators are used widely for stock analysis. Many traders will use a combination of moving averages with different time frames to help review stock trend direction. One of the more popular combinations is to use the 50-day and 200-day moving averages. Investors may use the 200-day MA to help smooth out the data a get a clearer long-term picture. They may look to the 50-day or 20-day to get a better grasp of what is going on with the stock in the near-term. Presently, the 200-day moving average is at 49.06 and the 50-day is 61.02.

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