Mondelez International (MDLZ) is a global snacking company that has recently seen its ADX indicator cross below the ADXR. This is an important technical indicator which measures the strength of a trend in the stock price. It is the third time this has occurred in its existence.
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The ADX indicator is calculated by taking the difference between two moving averages and then dividing by the sum of two moving averages. The ADXR (Average Directional Movement Index Rating) is a smoothed version of the ADX indicator. When the ADXR falls below the ADX indicator, it is an indication that the current trend is weakening.
Historically, when the ADX indicator has crossed below the ADXR, the stock price of MDLZ has decreased in the following 30 days 100% of the time. The median price movement has been $-1.79. In the following 90 days, the stock price has increased 67% of the time, with a median price movement of $0.13.
It is important for investors to keep an eye on the ADX indicator as it is a reliable indicator of a stock’s trend. With the ADX indicator crossing below the ADXR for the third time in recent months, investors should be aware that the current trend may be weakening.