RGC Resources, Inc. (RGCO) Given a Buy” 20-Day Moving Average Signal

RGC Resources, Inc. (RGCO) is seeing a Weak signal strength of “Buy”.  This signal utilizes a system that involves volatility, momentum, and wave theory to help reveal the general trend.  RGC Resources, Inc. (RGCO) has a 20-day moving average signal of “Buy”.  This short term signal is used to observe price changes. 

Taking a 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 RGC Resources, Inc. (RGCO).  

The Williams Percent Range or Williams %R is a technical indicator worth taking a look at. RGC Resources, Inc. (RGCO) currently has a 14 day Williams %R of -20.7. 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.

Another technical indicator that might serve as a powerful resource for measuring 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 RGC Resources, Inc. (RGCO) is noted at 13.5. 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.

Investors may use various technical indicators to help spot trends and buy/sell signals. Presently, RGC Resources, Inc. (RGCO) has a 14-day Commodity Channel Index (CCI) of 129.12. The CCI was developed by Donald Lambert. The assumption behind the indicator is that investment instruments move in cycles with highs and lows coming at certain periodic intervals. The original guidelines focused on creating buy/sell signals when the reading moved above +100 or below -100. Traders may also use the reading to identify overbought/oversold conditions.

Taking a look at other technical levels, the 3-day RSI stands at 70.11, the 7-day sits at 63.02 and the 14-day (most common) is at 60.41. The Relative Strength Index (RSI) is an often employed momentum oscillator that is used to measure the speed and change of stock price movements. When charted, the RSI can serve as a visual means to monitor historical and current strength or weakness in a certain market. This measurement is based on closing prices over a specific period of time. As a momentum oscillator, the RSI operates in a set range. This range falls on a scale between 0 and 100. If the RSI is closer to 100, this may indicate a period of stronger momentum. On the flip side, an RSI near 0 may signal weaker momentum. The RSI was originally created by J. Welles Wilder which was introduced in his 1978 book “New Concepts in Technical Trading Systems”.

Keeping an eye on Moving Averages, the 50-day is 25.67, the 200-day is at 26.45, and the 7-day is 26.94 for RGC Resources, Inc. (RGCO).RGC Resources, Inc. (RGCO) currently has a 1 month MA of 26.64. 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 25.7, and a 6 month MA of 25.72.

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