Shares of Red Rock Resorts Inc (RRR) opened the last session at 18.70, touching a high of 18.79 and a low of 17.92 , yielding a change of -0.70. The latest reading places the stock below the Ichimoku cloud which indicates negative momentum and a potential sell signal for the equity.
Investors paying close attention to the daily ebbs and flows of the stock market may be trying to guess which way momentum will swing into the next couple of months. Finding those stocks that are ready to ride the lightning may not be the easiest task with markets chugging along near all time highs. Investors may have to first figure out how much risk they want to take on when picking the next round of stocks. Once the risk appetite is determined, investors can start to decide whether they think it is best to go with the flow or buck the trend. Either way, paying attention to short-term and long-term price moves may help paint a clearer picture of what is happening with a particular stock. Maybe those stocks that were sure-fire winners a few months ago have lost some steam. Adjusting the portfolio may or may not be necessary, but knowing exactly what stocks are owned and how they are performing may help with additional decision making along the way. Of course nobody wants to be on the outside looking in as a stock is taking off, but there should be plenty of other opportunities in the future. Staying current with global economic conditions and keeping a finger on the pulse of the company during earnings season can help shed some light on where the stock may be headed next.
The Ichimoku cloud is a favorite technical indicator used primarily in Asian markets. The cloud is one of the only indicators that is both forward and backward looking. The cloud produces better levels of support and resistance and is a breakout trader’s best friend. The cloud is also one of the easiest indicators to use. Any trader, regardless of skill level or expertise, can use the cloud to quickly and efficiently analyze any product on any time frame. The cloud shines in the fact that it can be universally applied to any trading plan by any trader.
It is a type of chart used in technical analysis to display support and resistance, momentum, and trend in one view. TenkanSen and KijunSen are similar to moving averages and analyzed in relationship to one another. When the shorter term indicator, TenkanSen, rises above the longer term indicator, KijunSen, the securities trend is typically positive. When TenkanSen falls below KijunSen, the securities trend is typically negative. TenkanSen and KijunSen as a group are then analyzed in relationship to the Cloud, which is composed of the area between Senkou A and Senkou B. A multi-faceted indicator designed to give support/resistance levels, trend direction, and entry/exit points of varying strengths. General theory behind this indicator states that if price action is above the cloud, the overall trend is bullish, and if below the cloud, the overall trend is bearish. There are also moving averages (the Tenkan and Kijun lines) which act like the MACD crossover signals with the Tenkan crossing from underneath the Kijun as a bullish signal, while crossing overhead giving a bearish signal.
Checking on some popular technical levels, Red Rock Resorts Inc (RRR) has a 14-day Commodity Channel Index (CCI) of -85.72. The CCI technical indicator can be employed to help figure out if a stock is entering overbought or oversold territory. CCI may also be used to help discover divergences that may signal reversal moves. A CCI closer to +100 may provide an overbought signal, and a CCI near -100 may provide an oversold signal.
Stock analysis typically falls into two main categories. Some investors may prefer technical analysis, and others may prefer to study the fundamentals. Many investors will keep an eye on both. Technical analysis involves trying to project future stock price movements based on prior stock activity. Technicians strive to identify chart patterns and study other historical price and volume data. Technical investors look to identify trends when assessing a stock. The trend is typically considered to be the main direction of the share price. Trends are generally categorized as either up, down, or sideways. If a bullish trend is spotted, the trader may expect the upward trend to continue and thus try to capitalize on further upward action.
Tracking other technical indicators, the 14-day RSI is presently standing at 33.72, the 7-day sits at 30.59, and the 3-day is resting at 20.70 for Red Rock Resorts Inc (RRR). The Relative Strength Index (RSI) is a highly popular technical indicator. The RSI is computed base on the speed and direction of a stock’s price movement. The RSI is considered to be an internal strength indicator, not to be confused with relative strength which is compared to other stocks and indices. The RSI value will always move between 0 and 100. One of the most popular time frames using RSI is the 14-day.
Moving averages have the ability to be used as a powerful indicator for technical stock analysis. Following multiple time frames using moving averages can help investors figure out where the stock has been and help determine where it may be possibly going. The simple moving average is a mathematical calculation that takes the average price (mean) for a given amount of time. Currently, the 7-day moving average is sitting at 18.72.
Let’s take a further look at the Average Directional Index or ADX. The ADX measures the strength or weakness of a particular trend. Investors and traders may be looking to figure out if a stock is trending before employing a specific trading strategy. The ADX is typically used along with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) which point to the direction of the trend. The 14-day ADX for Red Rock Resorts Inc (RRR) is currently at 19.06. In general, and ADX value from 0-25 would represent an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would signify a very strong trend, and a value of 75-100 would point to an extremely strong trend.