Ryman Healthcare (RYM.NZ) are being closely watched by investors as the firm’s Mesa Adaptive Moving Average (MAMA) has moved above the Fractional Adaptive Moving Average (FAMA), indicating that a potential upward move might be forthcoming. The MESA Adaptive Moving Average, which was developed by John Ehlers, is a technical trend-following indicator which adapts to price movement “based on the rate change of phase as measured by the Hilbert Transform Discriminator”. This method of adaptation features a fast and a slow moving average so that the composite moving average swiftly responds to price changes and holds the average value until the next bar’s close. The author states that because the average’s fallback is slow, trading systems can be created with almost whipsaw-free trades.
Investors have plenty to keep up with when following day to day business news. Sifting through the headlines can be cumbersome, and figuring out which data to pay attention to can be very time consuming. News events can play a big role in the investing world. Big news has the ability to push a stock up or down. Sometimes the move may be justified, and other times it may not be. Disciplined investors are usually skilled at determining which information to focus on. Overreactions can play a large role in determining the long-term health of a portfolio. Investors often have to understand that a great stock can see periods of decline just as a weak stock may experience periods of strength. Putting in the research hours can help the investor prepare for opportunities when they spot unusual action in the stock market.
Traders may be also be focusing in on the ATR or Average True Range indicator when performing stock analysis. At the time of writing, Ryman Healthcare (RYM.NZ) has a 14-day ATR of 0.28. The average true range indicator was developed by J. Welles Wilder in order to measure volatility. The ATR may assist traders with figuring out the strength of a breakout or reversal in price. It is important to note that the ATR was not designed to determine price direction or to predict future prices.
Currently, the 14-day ADX for Ryman Healthcare (RYM.NZ) is sitting at 23.36. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would identify a very strong trend, and a value of 75-100 would lead to an extremely strong trend. ADX is used to gauge trend strength but not trend direction. Traders often add the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of a trend.
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Checking in on some other technical levels, the 14-day RSI is currently at 54.81, the 7-day stands at 53.50, and the 3-day is sitting at 38.68. Many investors look to the Relative Strength Index (RSI) reading of a particular stock to help identify overbought/oversold conditions. The RSI was developed by J. Welles Wilder in the late 1970’s. Wilder laid out the foundation for future technical analysts to further investigate the RSI and its relationship to underlying price movements. Since its inception, RSI has remained very popular with traders and investors. Other technical analysts have built upon the work of Wilder. The 14-day RSI is still a widely popular choice among technical stock analysts.
Investors may be watching other technical indicators such as the Williams Percent Range or Williams %R. The Williams %R is a momentum indicator that helps measure oversold and overbought levels. This indicator compares the closing price of a stock in relation to the highs and lows over a certain time period. A common look back period is 14 days. Ryman Healthcare (RYM.NZ)’s Williams %R presently stands at -26.85. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would indicate an overbought situation. A reading from -80 to -100 would indicate an oversold situation.
Taking a closer look from a technical standpoint, Ryman Healthcare (RYM.NZ) presently has a 14-day Commodity Channel Index (CCI) of 45.64. Typically, the CCI oscillates above and below a zero line. Normal oscillations tend to stay in the range of -100 to +100. A CCI reading of +100 may represent overbought conditions, while readings near -100 may indicate oversold territory. Although the CCI indicator was developed for commodities, it has become a popular tool for equity evaluation as well.
Some investors may be lamenting the fact that they have not taken full advantage of the long bull run. There are plenty of pundits that are calling for a sharp stock market decline, but there are also many who believe that the ceiling has been raised and there is much more room for stocks to go higher. Getting into the market at these levels may be holding some investors back from jumping into the fray, and nobody can be sure which way the momentum will swing as we near the end of the year. The next round of company earnings reports should provide some good information about future prospects. Investors will be closely watching to see which sectors are running at full speed and which ones are lagging.