With $19.22 the Support Is Jupai Holdings Ltd (JP) Worth a Look?

Traders may be focusing in on the ATR or Average True Range indicator when performing stock analysis. At the time of writing, Jupai Holdings Ltd (JP)
has a 14-day ATR of 0.87. The average true range indicator was developed by J. Welles Wilder in order to measure volatility. The ATR may assist traders with figuring out the strength of a breakout or reversal in price. It is important to note that the ATR was not designed to determine price direction or to predict future prices.

In attempting to identify a general trend, we note that Jupai Holdings Ltd (JP) currently shows a Sell, according to the Trendspotter signal.  Trendspotter signal is determined by combining momentum, volatility and a bit of wave theory to assist in identifying a directional trend of a stock.  Jupai Holdings Ltd’s 20-day Bollinger is showing a “Hold” and the 20-Day MA signals a “Sell”.  Trendspotter is compared to the historical performance where maximum would be considered the strongest, and minimum would be touted as the weakest. In terms of direction, the trendspotter signal is currently Strongest. This signal may indicate if the Buy or Sell is weakening or gaining strength, or if the Hold is leaning towards a Buy or Sell.

Ratings Summary
20-day Bollinger (identifies short-term overbought and oversold zones): “Hold
20-Day MA (Short term signal used to observe price changes): “Sell
20-50 Day MACD (Used to identify bullish or bearish directional movement): “Buy

Currently, the 14-day ADX for Jupai Holdings Ltd (JP) is sitting at 9.04. 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 47.56, the 7-day stands at 43, and the 3-day is sitting at 24.29. 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. Jupai Holdings Ltd (JP)’s Williams %R presently stands at -45.14. 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, Jupai Holdings Ltd (JP) presently has a 14-day Commodity Channel Index (CCI) of -49.4. 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.

Lastly will look at the Bollinger Band signal, specifically the 20 day reading.  This indicator can be used to identify short-term overbought and oversold zones, to confirm divergences between prices and indicators and to predict future price targets.  The 20-Day Bollinger Band currently is signaling a “Hold” for Jupai Holdings Ltd (JP).  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.