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If you recall from our June article surrounding GB Sciences Inc. we covered how the Commodity Channel Index (here on referred to as CCI) could be used. Click here for link <insert link to JUNE TA article> In that article we focused strictly on how it can be used as a more sensitive measure of oversold and overbought conditions. Today we are going to continue our journey with the CCI indicator by looking at GT Biopharma. Per their website, they state that: “Using our proprietary platform technology, GT Biopharma is generating novel immuno-oncology biopharmaceutical drugs targeting cancers such as acute lymphocytic leukemia, non-Hodgkin's lymphoma, acute myeloid leukemia and multiple solid tumors.” I am no doctor, but I am willing to bet that their success in their business will help people lives. What we can look at together though are some technical indicators to monitor the stock and whether or not it has a case of the bearish blues or is healthy
and bullish.
Now we will revisit the CCI indicator and show you another way that it can be used in your technical toolbelt. The CCI can be used to help identify when a new trend is emerging. Recall that positive values are more bullish while negative values are more bearish. When the CCI goes above 100 or below -100, those are the extremes we are looking at to pick up on for our next potential trend. When the CCI is used in conjunction with other charting tools we can spot the beginning of a new bearish or bullish trend. We know that a stock typically does not go straight up or down and there is some movement. This movement is normal and when it becomes overly bullish the CCI will peak towards the top (over 100) and then come back down some before peeking again in a bullish trend. The opposite is true for a bearish trend. You will want to pay attention the next time the CCI goes above 100 or below -100 to gauge if a new trend is emerging. One thing to look out for is whipsaw when these new trends are in progress. Enjoy adding the CCI indicator to your toolbelt and may the gains be with you.
GT Biopharma Inc (OTC: GTBP)
Note: this is a US stock for those looking to diversify