Ultragenyx Pharmaceutical Inc. (RARE): With Support at $72.67 and Resistance at $74.86, Is it a Buy?

Here we will take a look at the ADX reading on shares of Ultragenyx Pharmaceutical Inc. (RARE). Many chart analysts believe that an ADX reading over 25 would suggest a strong trend. A reading under 20 would suggest no trend, and a reading from 20-25 would suggest that there is no clear trend signal.

Changing lanes, we’ll look at what some of the short term technical indicators are reading for shares of Ultragenyx Pharmaceutical Inc. (RARE). 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.

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 Ultragenyx Pharmaceutical Inc. (RARE). 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 ADX was created by J. Welles Wilder to help determine how strong a trend is. In general, a rising ADX line means that an existing trend is gaining strength. The opposite would be the case for a falling ADX line.

At the time of writing, the 14-day ADX is standing at 42.81. Many chart analysts believe that an ADX reading above twenty five would suggest a strong trend.

CCI Watch

Looking further at additional technical indicators we can see that the 14-day Commodity Channel Index (CCI) for Ultragenyx Pharmaceutical Inc. (RARE) is sitting at 171.84. CCI is an indicator used in technical analysis that was designed by Donald Lambert. 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 – Price Reversal Indicators

Shares of Ultragenyx Pharmaceutical Inc. (RARE) have a 7-day moving average of 69.36. Taking a look at the relative strength indictor, we note that the 14-day RSI is currently at 79.64, the 7-day stands at 86.61, and the 3-day is sitting at 95.04. 

What Are These Used For?

  • Spot Trends
  • Identify Price Reversals
  • Locate support or resistance levels

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.  

RSI Review

Taking a glance at the relative strength indictor, we note that the 14-day RSI is currently at 79.64, the 7-day stands at 86.61, and the 3-day is sitting at 95.04. 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.

RSI Key Metrics

  • Below 30 = Oversold Range
  • Above 70 = Overbought Range

Trendspotter Signals
After a recent check, we can see that the trendspotter opinion is currently “Buy”. This signal uses a system combining volatility, momentum, and wave theory to help gauge 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 Weakening. 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.

Ultragenyx Pharmaceutical Inc. (RARE) currently has a 1 month MA of 63.41. Investors may use moving averages for various reasons. Some may use the moving average as a primary trading tool, while others may use it as a back-up. 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 56.05, and a 6 month MA of 52.49.

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