RXi Pharmaceuticals Corporation (RXII) 1st Resistance at 2.61, Support at $2.38

RXi Pharmaceuticals Corporation (RXII) currently has a 50-day Moving Average of 2.73, the 200-day Moving Average is 4.42, and the 7-day is noted at 2.34.  Investors may keep an eye out for when the stock price crosses a particular moving average and then closes on the other side. These moving average crossovers may be used to help spot momentum shifts, or possible entry/exit points. A cross below a certain moving average may signal the start of a downward move. On the flip side, a cross above a moving average may suggest a possible uptrend. Investors may be focused on many different time periods when studying moving averages. The stock currently has a 3 month MA of 2.98, and a 6 month MA of 3.73.

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.  The 20-Day Bollinger Band currently is signaling a “Hold” for RXi Pharmaceuticals Corporation (RXII). 

Traders may be relying in part on technical stock analysis. RXi Pharmaceuticals Corporation (RXII) currently has a 14-day Commodity Channel Index (CCI) of 85.77. Despite the name, CCI can be used on other investment tools such as stocks. The CCI was designed to typically stay within the reading of -100 to +100. 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.

At the time of writing, the 14-day ADX for RXi Pharmaceuticals Corporation (RXII) is 16.39. Many technical chart 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 ADX is typically plotted along with two other directional movement indicator lines, the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI). Some analysts believe that the ADX is one of the best trend strength indicators available.

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. The 14-day RSI is currently sitting at 51.55, the 7-day is at 62.73, and the 3-day is spotted at 83.37.

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