Ascena Retail Group, Inc. (ASNA) has created a compelling message for traders in the most recent trading. That message has grown stronger as the technical chart setup has developed into a more composite picture for the stock. This is the breakdown as we see it. The technical chart setup gets scant attention from many traders. Yet it is perhaps, the single biggest bringer of news. News about how a stock is doing over time, and when read carefully, what a stock might do in the future. Traders that pay close attention to the charts, give themselves an edge.
The 50 and 200 SMAs for ASNA have created a marked trend which is now helping traders to make solid decisions regarding the stock. It’s a trend that is now unmistakable. Based on the trend levels presented by both indicators, the overall sentiment towards ASNA is best described as bearish. This trend has created a unified opinion across the trading floor and it is clear that the overall outlook for the stock is now established as negative. But it’s not just the outlook that’s being affected for the stock. Thanks to the consolidated opinion on ASNA, activity has also seen a pronounced trend. Under current sentiments the volume activity and subsequent trend has created a strong outlook from buyers and sellers. When trends cascade, as they are certainly shaping up with the current stock, it can be a source of rich pickings for traders who remain alert and ready to act. It is unsurprising in the case of ASNA, that the current trend has created some enthusiasm among traders regarding the stock. In terms of consistency, it is clear that both the 50 and 200 SMAs have done their job in bring traders the overall trend-picture currently being seen for ASNA.
There is of course more to the tale than just what the SMAs have presented. For those added details, we can take a look at the Relative strength indicator (RSI) and Stochastic measures, both of which give deeper insights into the overall sentiment of buyers and sellers. SMAs will tell alert you to price direction, but when it comes to judging what buyers and sellers are doing, few indicators are better than RSI and the Stochastic. It as this level of technical data that a trader can determine whether a stock is currently overbought is oversold. The current picture for ASNA is of course very telling based on these two additional measures. Based on current readings, ASNA’s 14-day RSI is 16.73%. Taken on the standard scale of measurement for RSI, this suggests that ASNA is currently oversold, suggesting that the stock may have hit a floor and could potentially see an uptick. The stochastic reading offers another solid measure of whether the stock is either overbought, or oversold. In the case of ASNA, Stochastic readings gathered over the last 30 days have created a score of 5.20%. This suggests ASNA is oversold at current levels.
Now, you might be forgiven for thinking that the above technical indicators are all we need to make a sound judgment on ASNA, but that would be a mistake. Not a major one, but a mistake which nonetheless could cost you. Other indicators can still be layered on to provide a more detailed picture. By this point in the analysis of ASNA, it is clear that other technical indicators are saying essentially the same things. Specifically the -2.18 has birthed a negative overall sentiment when measured over the previous 30 days or so of trading. Over the longer-term ASNA has underperform the S&P 500 by -90.7. This has, unsurprisingly, created higher volatility levels when compared with similar stocks of the same grade and class. Historical volatility is no less consistent. The historical volatility picture for ASNA is shown in the reading of 123.88%. ASNA has clearly shown its full hand by the overall input of these technical indicators. But there is one final measure that when added to the already rich mix, shows in full color what ASNA is doing. The indicator is the Average True Range, and based on the current 7.82 reading, ASNA is certainly worth paying attention to.
ASNA couldn’t be clearer in terms of the kind of action required in light of the picture shown by its technical indicators.