Genworth Mortgage Insurance Australia Ltd (GMA.AX) Seeing Increased Action in Session – Stock Talker


Genworth Mortgage Insurance Australia Ltd (GMA.AX) shares are moving today on volatility -1.69% or -0.05 from the open. The ASX listed company saw a recent bid of 2.91 and 453040 shares have traded hands in the session.

Investors may be scrambling to make sure they have all their ducks in a row as we roll into the next round of company earnings reports. Sell-side analysts and other experts will be getting their final projections tallied before earnings are released. Covering analysts will typically update estimates prior to and after the company earnings report. Individual investors have the option of following professional sell-side opinions when it comes to stock research. All the speculation heading into reporting season can be a bit tricky to digest for the average investor. Investors who can stomach the volatility may be looking forward to trading around earnings news while others might be avoiding making any trades. At the end of the day, this comes down to personal preference for traders or investors playing with their own money. There may be plenty of big earnings blowouts, but there may also be some huge earnings disappointments in the coming weeks. 

Deep diving into the technical levels for Genworth Mortgage Insurance Australia Ltd (GMA.AX), we note that the equity currently has a 14-day Commodity Channel Index (CCI) of -10.44. Active investors may choose to use this technical indicator as a stock evaluation tool. Used as a coincident indicator, the CCI reading above +100 would reflect strong price action which may signal an uptrend. On the flip side, a reading below -100 may signal a downtrend reflecting weak price action. Using the CCI as a leading indicator, technical analysts may use a +100 reading as an overbought signal and a -100 reading as an oversold indicator, suggesting a trend reversal.

Genworth Mortgage Insurance Australia Ltd’s Williams Percent Range or 14 day Williams %R currently sits at -69.23. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would point to an overbought situation. A reading from -80 to -100 would signal an oversold situation. The Williams %R was developed by Larry Williams. This is a momentum indicator that is the inverse of the Fast Stochastic Oscillator.

Currently, the 14-day ADX for Genworth Mortgage Insurance Australia Ltd (GMA.AX) is sitting at 10.96. 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.

The RSI, or Relative Strength Index, is a widely 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 RSIfor Genworth Mortgage Insurance Australia Ltd (GMA.AX) is currently at 47.81, the 7-day stands at 43.56, and the 3-day is sitting at 28.57.

Leave a Reply