PPL, the stock ticker for PPL Corporation, recently had its Average Directional Index (ADX) indicator cross below its Average Directional Index Rating (ADXR). This has occurred seven times before, and the data shows that the stock price has decreased in the following 30 days 86% of the time, with a median price movement of $-0.99. In the following 90 days, the stock price also decreased 86% of the time, with a median price movement of $-1.36.
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The ADX indicator is a technical analysis tool that is used to measure the strength of a trend in a given security. It is calculated by taking the difference between two exponential moving averages (EMAs) of the underlying asset and then dividing it by the sum of the two EMAs. The ADXR is a moving average of the ADX indicator and is used to smooth out the ADX readings.
When the ADX indicator crosses below the ADXR, it is an indication that the trend in the security is weakening. This can be a sign that the stock may be due for a correction in the near future. This is especially true in the case of PPL, where the data shows that the stock price has decreased in the following 30 and 90 days 86% of the time.
Investors should use caution when investing in PPL, as the data suggests that the stock price may be due for a correction in the near future.