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. After a recent check, the stock’s first resistance level is 68.22, and the second resistance level is 68.45. On the other side, investors are watching the first support level of 67.64, and the second support level of 67.29.
Active traders have a wide range of technical indicators at their disposal for when completing technical stock analysis. Currently, the 14-day ATR for Republic Services, Inc. (RSG) is spotted at 0.87. First developed by J. Welles Wilder, the ATR may assist traders in determining if there is heightened interest in a trend, or if extreme levels may be signaling a reversal. Simply put, the ATR determines the volatility of a security over a given period of time, or the tendency of the security to move one direction or another.
Changing lanes, we’ll look at what some of the short term technical indicators are reading for shares of Republic Services, Inc. (RSG). The signal from the 20-day moving average is revealing a “Buy”. The 20-50 day MACD Oscillator, which can be used to identify bullish or bearish directional movement is currently showing a “Buy” signal.
Checking in on some other technical levels, the 14-day RSI is currently at 56.03, the 7-day stands at 57.42, and the 3-day is sitting at 59.34. The RSI, or Relative Strength Index, is a commonly 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.
Another technical indicator that may be a powerful resource for determining trend strength is the Average Directional Index or ADX. The ADX was introduced by J. Welles Wilder in the late 1970’s and it has stood the test of time. The ADX is typically used in conjunction with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to help spot trend direction as well as trend strength. At the time of writing, the 14-day ADX for Republic Services, Inc. (RSG) is noted at 22.05. Many technical analysts believe that an ADX value over 25 would suggest a strong trend. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal.
The Williams Percent Range or Williams %R is another technical indicator worth taking a look at. Republic Services, Inc. (RSG) currently has a 14 day Williams %R of -24.52. The Williams %R fluctuates between 0 and -100 measuring whether a security is overbought or oversold. The Williams %R is similar to the Stochastic Oscillator except it is plotted upside-down. Levels above -20 may indicate the stock may be considered is overbought. If the indicator travels under -80, this may signal that the stock is oversold. Chart analysts may also use the indicator to project possible price reversals and to define trends.
Republic Services, Inc. (RSG) currently has a 14-day Commodity Channel Index (CCI) of 87.92. Active investors may choose to use this technical indicator as a stock evaluation tool. Used as a coincident indicator, the CCI reading above +100 would reflect strong price action which may signal an uptrend. On the flip side, a reading below -100 may signal a downtrend reflecting weak price action. Using the CCI as a leading indicator, technical analysts may use a +100 reading as an overbought signal and a -100 reading as an oversold indicator, suggesting a trend reversal.
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 Republic Services, Inc. (RSG). Bollinger Bands are among the most popular and powerful of the many indicators that traders can choose from. As the name implies, Bollinger Bands are price channels that are plotted above and below price. The outer bands are based on volatility in price, which means that they expand when price fluctuates and trends strongly, and the Bands contract during sideways consolidations and low momentum trends.