Shares of Ryman Healthcare Ltd (RYM.NZ) have seen the Relative Momentum Indicator (RMI) climb higher over the past 5 sessions. When this occurs, traders will be watching closely to see if the price breaks through a key level into overbought territory.
The Relative Momentum Index was created by Roger Altman and was first published in his article in a1993 issue of Technical Analysis of Stocks & Commodities magazine. Altman described the indicator in the following way:
““the RSI is modified by counting up and down days starting from today’s close relative to the close Y days ago, where Y is not necessarily 1 as required by the RSI. The RSI is released from the arbitrary restriction of comparing consecutive days for price changes” changing the period to 20 days, but with Y set at 5 instead of 1 makes it “easier to anticipate tradable reversal points compared with the one-parameter RSI. This modification is called the relative momentum index (RMI), in which momentum is substituted for strength, because a momentum index is usually obtained by creating a moving average of the most recent closing price compared with the close Y days in the past.”
Similar to the RSI, the RMI fluctuates between 0-100, where a reading crossing 70 would indicate overbought territory and under 30 Oversold.
As traders are trying to figure out whether it is a good time to enter or exit a position in Ryman Healthcare Ltd (RYM.NZ), the Average Directional Index or ADX is a another technical analysis indicator used to describe if a market is trending or not trending. The ADX alone measures trend strength but not direction. Using the ADX with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) may help determine the direction of the trend as well as the overall momentum. Many traders will use the ADX alongside other indicators in order to help spot proper trading entry/exit points. Currently, the 14-day ADX is 32.85. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would signal a very strong trend, and a value of 75-100 would indicate an extremely strong trend.
Ryman Healthcare Ltd (RYM.NZ) presently has a 14-day Commodity Channel Index (CCI) of 163.85. 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. The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of stock price movements. The RSI was developed by J. Welles Wilder, and it oscillates between 0 and 100. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70. RSI can be used to detect general trends as well as finding divergences and failure swings. The 14-day RSI for Ryman Healthcare Ltd (RYM.NZ) is currently at 75.69, the 7-day stands at 84.39, and the 3-day is sitting at 97.17.
Taking a peek at some Moving Averages, the 200-day is at 8.59, and the 50-day is 8.69. Dedicated investors may be looking to employ another tool for doing technical stock analysis. The Williams Percent Range or Williams %R is a technical indicator that was designed to measure overbought and oversold market conditions. The Williams %R indicator helps show the relative situation of the current price close to the period being observed. Ryman Healthcare Ltd (RYM.NZ)’s Williams Percent Range or 14 day Williams %R presently is at -6.15. In general, if the reading goes above -20, the stock may be considered to be overbought. Alternately, if the indicator goes under -80, this may show the stock as being oversold.