BSM Technologies Inc. (TSX:$GPS) shares have moved below the Balance Step indicator during midweek trading. This indicates a possible near-term bearish trend. The Balance Step formula takes a look at near-term moving averages to try and forecast possible price direction in the future.

Overconfidence can lead to an investor’s downfall. It’s important to know that you are making the right moves when the market is up. Turning a profit is not necessarily a sign of wise decisions, but may instead simply be chance or the after-effects of a bull market. Finding the right balance between confidence and caution is critical in any investment portfolio.

The Relative Strength Index is an oscillating indicator that can indicate whether a stock is oversold or overbought, and can help chart when a stock is gaining or losing strength. The RSI runs from 0 to 100, with most stocks falling between 30 and 70. A number below 30 would signal a stock is oversold, and a number above 70 would indicate the stock is overbought. BSM has a 3 day RSI of 7.90, a 7 day RSI of 26.15, and a 14 day RSI of 34.46.

The Average Trade Range is a tool used by investors to measure stock volatility. Unlike most other indicators, the ATR does not figure out price direction. A higher ATR is more favorable for stocks. BSM Technologies currently has a 14-day ATR of 0.06.

The Average Directional Index is an analysis indicator that measures the strength of a trend. It is often used in conjunction with the Plus Directional Index and the Minus Directional Index. It can be useful in spotting possible entry/exit points. A reading of 0-20 would indicate no trend, 20-25 would indicate no clear trend, and 25+ would indicate a clear trend with strength increasing parallel to the ADX. BSM has a 14-day ADX of 13.23.

The Williams Percent Range is a technical indicator that oscillates between 0 and -100 and measures whether a stock is oversold or overbought. The Williams %R is the inverse of the Stochastic Oscillator. Levels under -80 represent a security that is oversold and levels above -20 indicate a stock may be overbought.  BSM currently has a 14 day Williams %R of -94.12.

The Commodity Channel Index is an indicator that can signal when a security is overbought or oversold. Originally developed for the commodity market, the CCI runs from approximately -100 to +100, with anything approaching -100 signaling an oversold security and anything approaching +100 signaling a stock that is overbought.

Featured Image: Depositphotos/© eans