Richelieu Hardware Ltd (RCH.TO) shares are being placed on chartists radar as the recent share price of 24.02 is pushed below the balance step moving average.
The balance step is a simple Moving Average calculated from last 5 Balance Points (MA/3),5) of the weekly period bar plotted in step formation on the daily chart. This chart is used to project 1 bar forward (one day). The weekly steps can be used to determine a near-term trend. When the price is above, this typically indicates a bullish trend. When the price is below the Balance Step, this generally spells a bearish trend.
There is no easy answer when attempting to address the tough question of how to best approach the equity market, especially when facing a turbulent investing climate. There are many different schools of thought when it comes to stock trading. Investors may have to first gauge their appetite for risk in order to build a solid platform on which to construct a legitimate strategy. The wealth of available information has made the road a bit smoother to travel for amateur investors. Making the transition to the next level is most likely on the minds of many dedicated investors. Tracking technicals and fundamentals may also help provide a roadmap to help separate the contenders from the pretenders. As we head into the second half of the year, it remains to be seen which way the market will lean. Investors may have to do all the necessary homework in order to find stocks that will thrive under any market conditions.
Investors may be trying to decide which way the stock market will shift over the next couple of quarters. Having a general idea based on research is one thing, but constantly trying to time the market may lead to negative portfolio performance. Of course, overall market downturns can be frustrating to everyone invested in shares. Being able to ride out the day to day volatility and make proper investing decisions based on solid stock examination, may help the investor secure profits down the line. Investors who spend too much time focusing on stocks that have already made a run may find themselves in a sticky situation if they get into the name to late. Just because a certain stock has been going up for a long time, it doesn’t mean that the momentum will be sustained into the future. Taking the time to find quality stocks instead of just looking at the hot stock of the day, may allow investors to keep thriving in the market.
Investors may be taking a look at some additional technical numbers on shares of Richelieu Hardware Ltd (RCH.TO) in order to get a fuller picture. The 14-day RSI is currently spotted at 51.80, the 7-day is at 53.46, and the 3-day is sitting at 49.98. The RSI, or Relative Strength Index, is a widely used technical momentum indicator that compares price movement over time. The RSI was created by J. Welles Wilder who was striving to measure whether or not a stock was overbought or oversold. The RSI may be useful for spotting abnormal price activity and volatility. The RSI oscillates on a scale from 0 to 100. The normal reading of a stock will fall in the range of 30 to 70. A reading over 70 would indicate that the stock is overbought, and possibly overvalued. A reading under 30 may indicate that the stock is oversold, and possibly undervalued.
In terms of CCI levels, Richelieu Hardware Ltd (RCH.TO) currently has a 14-day Commodity Channel Index (CCI) of 125.66. Investors and traders may use this indicator to help spot price reversals, price extremes, and the strength of a trend. Many investors will use the CCI in conjunction with other indicators when evaluating a trade. The CCI may be used to spot if a stock is entering overbought (+100) and oversold (-100) territory. The 14-day ADX is 17.74. Many technical chart analysts believe that an ADX reading over 25 would suggest a strong trend. A level 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 studying other technical indicators like 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. Richelieu Hardware Ltd (RCH.TO)’s Williams %R presently stands at -45.45. 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. Looking at some moving average levels on shares of Richelieu Hardware Ltd (RCH.TO), the 200-day is at 27.09, the 50-day is 23.42, and the 7-day is sitting at 23.76. Moving averages can help identify trends and price reversals. They may also be used to help spot support and 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.
Investors may be wondering what’s in store for the next couple of months in terms of the stock market. Bull markets are times when investors may be willing to take some liberties with stock picks. Risk management is typically on the minds of many investors. Investors trying to gain an advantage may be searching for the perfect balance and diversification to help ease the risk and give the portfolio a needed boost. With so many different stocks to study, it may take a while to hone in on the proper ones. Investors will also be closely following the next round of economic data. Investors may be on the lookout for the next major data announcement that either keeps the bulls in charge or ushers in the bears.