Market Watch: Stein Mart Inc (SMRT) Share Update

Stein Mart Inc (SMRT) share levels are being closely watched as the equity has touched it’s lower Bollinger Band, reaching 1.27 on a recent tick.  

The Bollinger Band theory is designed to depict the volatility of a stock. It is quite basic, being composed of a simple moving average, and its upper and lower “bands” that are 2 standard deviations away. Standard deviations are a statistical tool used to contain the majority of movement or “deviation” around an average value. Bear in mind that when you use the Bollinger Band theory, it only works as a gauge or guide, and should be use with other indicators.

Traders generally use Bollinger Bands to determine overbought and oversold zones, to confirm divergences between prices and studies, and to project price targets. The wider the bands, the greater the volatility. The narrower the bands, the lesser the volatility.

Narrowing in on moving averages for Stein Mart Inc (SMRT), the 200-day is at 2.43, the 50-day is 1.29, and the 7-day is resting at 1.29. Moving average indicators are popular tools for stock analysis. Many traders will use a combination of moving averages with different time frames to help review stock trend direction. One of the more popular combinations is to use the 50-day and 200-day moving averages. Investors may use the 200-day MA to help smooth out the data a get a clearer long-term picture. They may look to the 50-day or 20-day to get a better grasp of what is going on with the stock in the near-term.

Traders may also be paying close attention to RSI levels on shares of Stein Mart Inc (SMRT). The current 14-day RSI is presently sitting at 47.15, the 7-day is 42.19, and the 3-day is 27.24. 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. When the RSI line moves up, the stock may be experiencing strength. The opposite is the case when the RSI line is heading lower. Different time periods may be used when using the RSI indicator. The RSI may be more volatile using a shorter period of time. 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.

When completing stock analysis, investors and traders may opt to review other technical levels. Stein Mart Inc (SMRT) currently has a 14-day Commodity Channel Index (CCI) of -97.37. Investors and traders may use this indicator to help spot price reversals, price extremes, and the strength of a trend. Many investors will use the CCI in conjunction with other indicators when evaluating a trade. The CCI may be used to spot if a stock is entering overbought (+100) and oversold (-100) territory. The Average Directional Index or ADX is often considered to be an important tool for technical trading or investing. The ADX is a technical indicator developed by J. Welles Wilder used to determine the strength of a trend. The ADX is often used along with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of the trend. Presently, the 14-day ADX is resting at 19.44.

Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would signal a very strong trend, and a value of 75-100 would indicate an extremely strong trend.