Ralph Lauren Corporation (RL) “Buy” Rating Calculated by Trendspotter

Ralph Lauren Corporation (RL) presently has a 14-day Commodity Channel Index (CCI) of 78.12. The CCI was created to typically stay within the reading of -100 to +100. Traders may use the indicator to determine if a stock is trending or to spot overbought/oversold conditions. A CCI reading above the +100 level would suggest that the stock is overbought and possibly primed for a correction. On the other hand, a reading of -100 would indicate that the stock is oversold.

After a recent check, the stock’s first resistance level is 138.9, and the second resistance level is 139.92. On the other side, investors are watching the first support level of 135.93, and the second support level of 133.98. Investors are often focused on 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. 

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, Ralph Lauren Corporation (RL) has a 200-day MA of 101.4, and a 50-day of 114.12. Presently, the stock has a 14-day RSI of 78.59 and the 7-day is sitting at 81.68. 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.

Watching some trend signals on shares of Ralph Lauren Corporation (RL), we can see that the trendspotter opinion is presently “Buy”. This signal uses a system combining volatility, momentum, and wave theory to help identify the general trend. The trendspotter strength signal is currently Strong. 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 Strengthening. 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.

Ralph Lauren Corporation (RL)’s Williams Percent Range or 14 day Williams %R presently is at -3.41. 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 is 39.83. 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.

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