Schaeffler AG (SHA.DE) has ended the week in the red, yielding negative results for the shares at they ticked -2.91%. In taking a look at recent performance, we can see that shares have moved -5.65% over the past 4-weeks, -10.56% over the past half year and -38.05% over the past full year.

While it might be very important for investors to know exactly what is going on with their portfolios, it should be noted that short-term market fluctuations have the tendency to be quite volatile. Longer-term investors may not be overly concerned about stock price fluctuations on a day to day basis if they are in a position for the long haul. Shorter-term investors may be keeping a much closer eye on things if they had originally planned to get in or out at certain levels. Of course, staying up on technical and fundamental data may prove to be the difference between a good portfolio and a great portfolio. Many sharp investors may have taken a considerable amount of time crafting a unique strategy. Keeping focused on previously determined risk tolerance and goals may help drown out the day to day noise to keep the longer-term goals clearly in view.        

The Relative Strength Index (RSI) is one of multiple popular technical indicators created by J. Welles Wilder. Wilder introduced RSI in his book “New Concepts in Technical Trading Systems” which was published in 1978. RSI measures the magnitude and velocity of directional price movements. The data is represented graphically by fluctuating between a value of 0 and 100. The indicator is computed by using the average losses and gains of a stock over a certain time period. RSI can be used to help spot overbought or oversold conditions. An RSI reading over 70 would be considered overbought, and a reading under 30 would indicate oversold conditions. A level of 50 would indicate neutral market momentum. The 14-day RSI is currently sitting at 42.45, the 7-day is at 45.17, and the 3-day is spotted at 57.15 for Schaeffler AG (SHA.DE).

Investors may be tracking certain levels on shares of Schaeffler AG (SHA.DE). The current 50-day Moving Average is 6.84, the 200-day Moving Average is 7.50, and the 7-day is noted at 6.35. Moving averages can help spot trends and price reversals. They may also be used to help find support or resistance levels. Moving averages are considered to be lagging indicators meaning that they confirm trends. A certain stock may be considered to be on an uptrend if trading above a moving average and the average is sloping upward. On the other side, a stock may be considered to be in a downtrend if trading below the moving average and sloping downward.

Traders may be relying in part on technical stock analysis. Schaeffler AG (SHA.DE) currently has a 14-day Commodity Channel Index (CCI) of -59.56. Despite the name, CCI can be used on other investment tools such as stocks. The CCI was designed to typically stay within the reading of -100 to +100. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction. On the other hand, a reading of -100 would imply that the stock is oversold and possibly set for a rally.

At the time of writing, the 14-day ADX for Schaeffler AG (SHA.DE) is 24.00. Many technical chart analysts believe that an ADX value over 25 would suggest a strong trend. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal. The ADX is typically plotted along with two other directional movement indicator lines, the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI). Some analysts believe that the ADX is one of the best trend strength indicators available.

Investors may be searching for high quality stocks to add to the portfolio. There may be various company characteristics that attract added attention. Many investors will be looking for a company that is a leader in their respective field with strong sales growth. Many investors will also look for companies with a solid management team that have proven track records. Investors that invest in individual stocks are most likely expecting the company to prosper and grow in the future. Expectations are typically that future earnings will be higher, and thus the stock price is expected to rise as well. There is rarely any substitute for hard work and dedication, and this is typically true when following the stock market as well. Keeping track of all the information available can be a daunting task. However, putting in those few extra hours on stock homework may prove to be the difference between a winning portfolio and a losing one.