PGJ downgraded to bearish (-3)
Tech Rating: -3
Tech ratings are 3 to -3 indicating bullish to bearish; a zero is neutral to cautionary.
Back on January 23rd we pointed to a possible new trend emerging with a mid range bullish rating emerging at 2. It didn’t happen.
Along with bearish crossovers in the indicator set, short term average has pushed back below mid and long term averages with price leading all three in a southerly direction. CCI says it is a short.
The rating and chart is likely a gauge of China investor sentiment at the moment. Investors look to have lost interest after the giant July to December run up and subsequent worse than expected growth numbers capped by a SHCOMP virtual triple top (27 basis points covers the range) of Jan 7th 3,373.95, Jan 16th 3,376.49 and Jan 26th 3,383.18.
The Chinese economy is sputtering as the country attempts to build a domestic consumer based economy while at the same time losing the manufacturing business that brought China to where it is today. It is kind of hard to build a domestic story when jobs are leaving and real estate is coming off.
If you would like more on the macro/domestic economic conundrum in China, please ask. We have a one pager which clearly stills the issues.
Price and moving averages:
Power Shares Golden Dragon has closed below its short term moving average.
Short term moving average is currently below mid term, and below long term moving averages.
Mid term moving average is currently below long term
The relationship between price and moving averages is: bearish in short term, and bearish in mid-long term.
Bollinger Bands:
PGJ has closed above bottom band by 3.4%.
Bollinger Bands are 20.7% narrower than normal.
The current width of the bands (alone) does not suggest anything conclusive about the future volatility or movement of prices.
CCI is now in negative range and generated a sell short signal 2 bars ago.
MACD
Crossovers:
Currently MACD is bearish since it is trading below its signal line.
MACD crossed below its signal line 4 bars ago.
Since MACD crossed its moving average, PGJ's price has decreased -2.04%
and has ranged from a high of 29 to a low of 27.77
MACD is not in an overbought/oversold range.
There have been no divergence signals within the last 5 periods.
**This commentary is for educational purposes only. It is not a recommendation to buy or sell. Use at your own risk.
About the Technical Rating Indicator
The Technical Rating Indicator combines established methods of technical analysis along with regression analysis and a weighting system based on signal strength to provide a technical rating. Note that none of the indicators use standard settings, and none of the settings have been optimized to fit a particular data set (avoiding in-sample bias).
The result is a clean, proprietary technical research rating system.
The Technical Rating Indicator is expressed in values ranging from -3 to +3.
A technical rating of -3 is issued when all individual indicators are exhibiting readings consistent with previous periods of negative prices (i.e. conditions are “bearish” for the stock price, based on historical analysis). A technical rating of +3 is issued when the individual indicators are exhibiting readings consistent with previous periods of positive price movement (i.e. conditions are “bullish” for the stock, based on historical analysis). Intermediate readings indicate a mix of signals from the inputs to the Technical Rating Indicator.
Disclosure: the firm does not currently hold a position in this stock and has no plans to create a long or short position over the next 5 business days.
