Transcat Inc (TRNS) MA Levels Holding Above FAMA

Transcat Inc (TRNS) are in focus today as the charts are revealing that the Mesa Adaptive Moving Average (MAMA) is holding steady above the FAMA, or Fractional Moving Average.  This environment typically indicates that there might be a buying opportunity aligning in technicals.  When there are crossovers between the FAMA and MAMA, the shares are often widely traded.  When the MAMA crosses above the FAMA, it means that the shares are likely to move higher.  Conversely the opposite occurs when the MAMA crosses below the FAMA.  The Mesa Moving Average was first mentioned by John Ehlers in a paper published in a 2001 edition of Technical Analysis of Stocks and Commodities Magazine.  The below was excerpted from the publication,

“The MESA Adaptive Moving Average (MAMA) adapts to price movement based on the rate of change of phase as measured by the Hilbert Transform Discriminator (Technical Analysis of Stocks and Commodities magazine, December 2000). This method features a fast attack average and a slow decay average so that composite average rapidly ratchets behind price changes and holds the average value until the next ratchet occurs.”

Serious investors are often looking for that next batch of quality stocks to add to the portfolio. Finding quality stocks at a discount can be a tough task, especially with the market trading at such high levels. Many investors will be patiently waiting for a dip to get in on some researched names. Being prepared for any situation may help the investor make those tricky decisions when opportunities present themselves. Nobody can say for sure which way momentum is likely to swing heading into the New Year. Staying on top of the key economic data can help provide a good baseline for stock investing decisions in the near future.  

Let’s take a look at some additional technical levels on shares of Transcat Inc (TRNS). The current 14-day RSI is noted at 64.34, the 7-day is 63.05, and the 3-day is seen at 63.99. The RSI, or Relative Strength Index is a popular oscillating indicator among traders and investors. The RSI operates in a range-bound area with values between 0 and 100. Many traders keep an eye on the 30 and 70 marks on the RSI scale. A move above 70 is widely considered to show the stock as overbought, and a move below 30 would indicate that the stock may be oversold. Traders may use these levels to help identify stock price reversals.

Traders may be focusing on other technical indicators for stock assessment. Presently, Transcat Inc (TRNS) has a 14-day Commodity Channel Index (CCI) of 55.99. The CCI technical indicator can be used to help determine if a stock is overbought or oversold. CCI may also be used to help discover divergences that could possibly signal reversal moves. A CCI closer to +100 may provide an overbought signal, and a CCI near -100 may offer an oversold signal. 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. Transcat Inc (TRNS)’s Williams %R presently stands at -43.75. 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.

Currently, the 14-day ADX for Transcat Inc (TRNS) is sitting at 35.35. 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.

A widely used 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. Moving averages can be very helpful for spotting peaks and troughs. They may also be used to help the trader figure out reliable support and resistance levels for the stock. Currently, the 200-day MA is sitting at 23.78.

There are various factors to examine when looking at what spurs growth in the stock market. Many investors will monitor macro-economic factors that influence the price of shares. Some of these factors include the overall condition of the economy and market sentiment. Following the macro factors, investors may employ a top down approach when viewing the equity markets. This may include starting with a sector poised for growth and filtering down to specific stock that meet the investor’s criteria. Another way to approach the stock market is to view the micro-economic factors that influence stocks. This may include studying company profits, news, and the competence of overall management. Investors will often try to piece together all the different information available in order to select stocks that will have a positive impact on the long-term strength of the portfolio.

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