Putting shares of Royal Gold, Inc. (RGLD) at the forefront, let’s drill down into some key metrics.
ADX Momentum Focus
Taking a quick look at technical levels and trend lines, we see that the stock has a 14-day ADX of 11.51. For traders looking to capitalize on trends, the ADX may be an essential technical tool. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would indicate a very strong trend, and a value of 75-100 would signify an extremely strong trend.
Looking further at additional technical indicators we can see that the 14-day Commodity Channel Index (CCI) for Royal Gold, Inc. (RGLD) is sitting at 119.21. CCI is an indicator used in technical analysis that was designed by Donald Lambert. Although it was originally intended for commodity traders to help identify the start and finish of market trends, it is frequently used to analyze stocks as well. A CCI reading closer to +100 may indicate more buying (possibly overbought) and a reading closer to -100 may indicate more selling (possibly oversold).
Moving averages can help spot trends and price reversals. They may also be used to help find support or 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. Shares of Royal Gold, Inc. (RGLD) have a 7-day moving average of 89.22. Taking a glance at the relative strength indictor, we note that the 14-day RSI is currently at 57.51, the 7-day stands at 61.76, and the 3-day is sitting at 73.99.
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.
Opinion and Near-Term Signals
Now we’ll take a look at some trend signals on Royal Gold, Inc. (RGLD) shares. After a recent scan, we can see that the trendspotter opinion is reading “Buy”. This signal uses a system combining volatility, momentum, and wave theory to help gauge the general trend. The trendspotter strength signal is currently Weak. This signal is compared to the historical performance where maximum would be considered the strongest, and minimum would be touted as the weakest. In terms of direction, the trendspotter signal is currently Strongest. This signal may indicate if the Buy or Sell is weakening or gaining strength, or if the Hold is leaning towards a Buy or Sell.
Bollinger Bands are somewhat like moving average envelopes, but drawing calculations for both is different. In Bollinger Bands, standard deviation levels are considered to draw the upper and lower lines, whereas for Moving Average Envelopes, the lines are plotted by taking a fixed percentage. The 20-Day Bollinger Band currently is signaling a “Hold” for Royal Gold, Inc. (RGLD). This indicator can be used to find short-term overbought and oversold areas, to confirm divergences between prices and indicators and to predict future price targets.
Investors may also pay attention to stock price support and resistance levels. The support is simply a level where a stock may see a bounce after it has fallen. If the stock price manages to break through the first support level, the attention may shift to the second level of support. The resistance is the opposite of support. As a stock rises, it may see a retreat once it reaches a certain level of resistance. After a recent check, the stock’s first resistance level is 90.93, and the second resistance level is 92. On the other side, investors are watching the first support level of 88.73, and the second support level of 87.6.