Waterstone Financial (WSBF) Trend Signal of “Sell” With $17.05 As Support

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. The 20-Day Bollinger Band currently is signaling a “Hold” for Waterstone Financial (WSBF).  

Changing lanes, we’ll look at what some of the short term technical indicators are reading for shares of Waterstone Financial (WSBF).  The signal from the 20-day moving average is revealing a “Sell”.  The 20-50 day MACD Oscillator, which can be used to identify bullish or bearish directional movement is currently showing a “Sell” signal.

Doing some trend analysis on shares of Waterstone Financial (WSBF), we note that the trendspotter opinion is currently Sell. This signal uses a system combining volatility, momentum, and wave theory to help identify the general trend.

Investors might be interested in taking a closer look at stock technical levels. After a recent check, Waterstone Financial (WSBF) has a 14-day ATR of 0.34. The average true range indicator was created by J. Welles Wilder in order to measure volatility. The ATR may help traders to determine the strength of a breakout or reversal in price. It is important to mention that the ATR was not designed to calculate price direction or to predict future prices.

Currently, the 14-day ADX for Waterstone Financial (WSBF) is sitting at 11.41. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would identify a very strong trend, and a value of 75-100 would lead to an extremely strong trend. ADX is used to gauge trend strength but not trend direction. Traders often add the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of a trend.

Checking in on some other technical levels, the 14-day RSI is currently at 49.21, the 7-day stands at 45.59, and the 3-day is sitting at 36.99. Many investors look to the Relative Strength Index (RSI) reading of a particular stock to help identify overbought/oversold conditions. The RSI was developed by J. Welles Wilder in the late 1970’s. Wilder laid out the foundation for future technical analysts to further investigate the RSI and its relationship to underlying price movements. Since its inception, RSI has remained very popular with traders and investors. Other technical analysts have built upon the work of Wilder. The 14-day RSI is still a widely popular choice among technical stock analysts.

Investors may be watching other technical indicators such as the Williams Percent Range or Williams %R. The Williams %R is a momentum indicator that helps measure oversold and overbought levels. This indicator compares the closing price of a stock in relation to the highs and lows over a certain time period. A common look back period is 14 days. Waterstone Financial (WSBF)’s Williams %R presently stands at -57.14. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would indicate an overbought situation. A reading from -80 to -100 would indicate an oversold situation.

Taking a closer look from a technical standpoint, Waterstone Financial (WSBF) presently has a 14-day Commodity Channel Index (CCI) of -6.25. 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.