Royal Bank of Canada (RY) 20-Day Moving Average Signaling a “Sell”

Royal Bank of Canada (RY) is currently given a “Sell” rating according to Barchart data.  Trendspotter signal is determined by combining momentum, volatility and a bit of wave theory to assist in identifying a directional trend of a stock.

Royal Bank of Canada (RY) currently has a 1 month MA of 77.25. 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 77.22, and a 6 month MA of 79.46.

Narrowing in on addtional moving averages for Royal Bank of Canada (RY), the 200-day is at 77.82, the 50-day is 76.47, and the 7-day is resting at 76.11. 

Traders may also be paying close attention to RSI levels on shares of Royal Bank of Canada (RY). The current 14-day RSI is presently sitting at 42.85, the 7-day is 38.77, and the 3-day is 44.79. The RSI, or Relative Strength Index is a popular oscillating indicator among traders and investors. The RSI operates in a range-bound area with values between 0 and 100. When the RSI line moves up, the stock may be experiencing strength. The opposite is the case when the RSI line is heading lower. Different time periods may be used when using the RSI indicator. The RSI may be more volatile using a shorter period of time. Many traders keep an eye on the 30 and 70 marks on the RSI scale. A move above 70 is widely considered to show the stock as overbought, and a move below 30 would indicate that the stock may be oversold. Traders may use these levels to help identify stock price reversals.

When completing stock analysis, investors and traders may opt to review other technical levels. Royal Bank of Canada (RY) currently has a 14-day Commodity Channel Index (CCI) of -78. Investors and traders may use this indicator to help spot price reversals, price extremes, and the strength of a trend. Many investors will use the CCI in conjunction with other indicators when evaluating a trade. The CCI may be used to spot if a stock is entering overbought (+100) and oversold (-100) territory. The Average Directional Index or ADX is often considered to be an important tool for technical trading or investing. The ADX is a technical indicator developed by J. Welles Wilder used to determine the strength of a trend. The ADX is often used along with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of the trend. Presently, the 14-day ADX is resting at 20.73.

Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would signal a very strong trend, and a value of 75-100 would indicate an extremely strong trend.

Signal Summary
20-day Bollinger (identifies short-term overbought and oversold zones): “Hold”
20-Day MA (Short term signal used to observe price changes): “Sell”.
20-50 Day MACD (Used to identify bullish or bearish directional movement): “Buy”

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