Radius Health, Inc. (RDUS) Bollinger Bands Near-Term Signal Indicates “Hold”

Tracking stock levels, Radius Health, Inc. (RDUS) has a 14-day Commodity Channel Index (CCI) of -60.58. Even though the name contains the word commodity, CCI can be used on other investment tools such as stocks. The CCI was developed to typically stay within the -100 to +100 levels. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction. On the other hand, a reading of -100 would imply that the stock is oversold and possibly set for a rally.

A popular tool among technical stock analysts is the moving average. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a certain period of time. They may also be used to assist the trader figure out proper support and resistance levels for the stock. Currently, Radius Health, Inc. (RDUS) has a 200-day MA of 33.84, and a 50-day of 32.75. Presently, the stock has a 14-day RSI of 35.98, the 7-day is sitting at 35.48, and the 3-day is resting at 42.65. The Relative Strength Index (RSI) is one of multiple popular technical indicators created by J. Welles Wilder. Wilder introduced RSI in his book “New Concepts in Technical Trading Systems” which was published in 1978. RSI measures the magnitude and velocity of directional price movements. The data is represented graphically by fluctuating between a value of 0 and 100. The indicator is computed by using the average losses and gains of a stock over a certain time period. RSI can be used to help spot overbought or oversold conditions. An RSI reading over 70 would be considered overbought, and a reading under 30 would indicate oversold conditions. A level of 50 would indicate neutral market momentum.

Radius Health, Inc. (RDUS)’s Williams Percent Range or 14 day Williams %R presently is at -89.69. 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. We can also take a look at the Average Directional Index or ADX of the stock. For traders looking to capitalize on trends, the ADX may be an essential technical tool. The ADX is used to measure trend strength. ADX calculations are made based on the moving average price range expansion over a specified amount of time. ADX is charted as a line with values ranging from 0 to 100. The indicator is non-directional meaning that it gauges trend strength whether the stock price is trending higher or lower. The 14-day ADX for Radius Health, Inc. (RDUS) presently sits at 24.85. 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.

Radius Health, Inc. (RDUS) is popping up on investor’s radar as the Trendspotter Opinion rating has reached “Sell” with first resistance at 29.01 and second resistance at 29.34.  On the other end, investors are watching the first support level of 28.39, and the second support level of 28.1. The trendspotter strength signal is currently Average. 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 Weakest. 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.

Signal Summary

20-day Bollinger (identifies short-term overbought and oversold zones): “Hold”
20-Day MA (Short term signal used to observe price changes): “Sell”
20-50 Day MACD (Used to identify bullish or bearish directional movement): “Sell”

Lastly will look at the Bollinger Band signal, specifically the 20 day reading.  This indicator can be used to identify short-term overbought and oversold zones, to confirm divergences between prices and indicators and to predict future price targets.  The 20-Day Bollinger Band currently is signaling a “Hold” for Radius Health, Inc. (RDUS).  

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