USA Compression Partners LP (USAC) Bollinger a “Buy” and 20-MA of “Buy”

The 20-Day Bollinger Band currently is signaling a “Buy” for USA Compression Partners LP (USAC).  Bollinger Bands are among the most popular and powerful of the many indicators that traders can choose from.  As the name implies, Bollinger Bands are price channels that are plotted above and below price. The outer bands are based on volatility in price, which means that they expand when price fluctuates and trends strongly, and the Bands contract during sideways consolidations and low momentum trends.

USA Compression Partners LP (USAC) currently has a 14-day Commodity Channel Index (CCI) of 144.4. Despite the name, CCI can be used on other investment tools such as stocks. The CCI was designed to typically stay within the reading of -100 to +100. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions. A CCI reading above +100 would imply that the stock is overbought, and a reading of -100 would imply that the stock is oversold.

A popular tool among technical stock analysts is the moving average. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a certain period of time. They may also be used to assist the trader figure out proper support and resistance levels for the stock. Currently, USA Compression Partners LP (USAC) has a 200-day MA of 16.59, and a 50-day of 17.54. Presently, the stock has a 14-day RSI of 61.53, the 7-day is sitting at 70.97, and the 3-day is resting at 80.32. The Relative Strength Index (RSI) is one of multiple popular technical indicators created by J. Welles Wilder. Wilder introduced RSI in his book “New Concepts in Technical Trading Systems” which was published in 1978. RSI measures the magnitude and velocity of directional price movements. The data is represented graphically by fluctuating between a value of 0 and 100. The indicator is computed by using the average losses and gains of a stock over a certain time period. RSI can be used to help spot overbought or oversold conditions. An RSI reading over 70 would be considered overbought, and a reading under 30 would indicate oversold conditions. A level of 50 would indicate neutral market momentum.

Investors are often focused on stock price support and resistance levels. The support is simply a level where a stock may see a bounce after it has fallen. If the stock price manages to break through the first support level, the attention may shift to the second level of support. The resistance is the opposite of support. As a stock rises, it may see a retreat once it reaches a certain level of resistance. After a recent check, the stock’s first resistance level is 18.33, and the second resistance level is 18.54. On the other side, investors are watching the first support level of 17.88, and the second support level of 17.64.

USA Compression Partners LP (USAC) is currently given a “Buy” trendspotter opinion.  Trendspotter signal is determined by combining momentum, volatility and a bit of wave theory to assist in identifying a directional trend of a stock.

USA Compression Partners LP (USAC)’s Williams Percent Range or 14 day Williams %R presently is at -8.94. 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. 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 presently sits at 26.11. 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.