Royal Gold Inc (RGLD): Wilder MA Above SMA on These Shares

The twenty one day Wilder Moving Average has been seen above the fifty day Simple Moving Average on shares of Royal Gold Inc (RGLD). Traders following these lines may be tracking the stock and checking for a strong near-term trend.

Investors are typically searching far and wide for any little advantage they can get in the stock market. Short-term traders using technical analysis may be looking to score quick profits by capitalizing on the fluctuations of stock prices. There are many different technical indicators that traders can choose to study. Some traders may find an indicator that works great by itself. Others may use a combination of multiple indicators to help spot trends and patterns. Many active traders will keep a close eye on a particular stock when it is nearing a new high or new low that hasn’t been touched in some time. Studying historical stock price action may lend some insight into whether or not a stock is likely to break out past the new high, or plummet further to a much lower low. Staying on top of the action may be crucial when frequently entering and exiting trades.  

Let’s view some technical levels on shares of Royal Gold Inc (RGLD). Presently, the 14 day Williams %R is -12.13. Readings may range from 0 to -100. A Williams %R that lands between -80 to -100 is typically seen as being in strong oversold territory. A reading between 0 to -20 would represent a strong overbought condition. As a momentum indicator, the Williams R% has the ability to be used with other technicals to help define a specific trend.

When looking at technical levels, traders should not overlook the RSI reading as it often can dictate if momentum has pushed past a key metric. 66.33, the 7-day stands at 73.26, and the 3-day is sitting at 87.38. The Relative Strength Index (RSI) oscillates between 0 and 100. Generally, the RSI is considered to be oversold when it falls below 30 and overbought when it heads above 70.

Moving averages can help spot trends and price reversals. They may also be used to help find support or resistance levels. Moving averages are considered to be lagging indicators meaning that they confirm trends. 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. Shares of Royal Gold Inc (RGLD) have a 7-day moving average of 88.26.

The Average Directional Index or ADX is a popular technical indicator designed to help measure trend strength. Many traders will use the ADX in combination with other indicators in order to help formulate trading strategies. Presently, the 14-day ADX for Royal Gold Inc (RGLD) is 22.76. In general, 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. The ADX alone was designed to measure trend strength. When combined with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI), it can help decipher the trend direction as well.

Royal Gold Inc (RGLD) presently has a 14-day Commodity Channel Index (CCI) of 161.52. Typically, the CCI oscillates above and below a zero line. Normal oscillations tend to stay in the range of -100 to +100. A CCI reading of +100 may represent overbought conditions, while readings near -100 may indicate oversold territory. Although the CCI indicator was developed for commodities, it has become a popular tool for equity evaluation as well.

Smart investors are often very knowledgeable about the markets. Many successful investors have become highly adept at knowing when to buy and when to sell. They have also managed to control risk and secure sustained profits. This doesn’t just happen overnight. Investors often spend many years of trial and error before being able to put together the puzzle. Top investors are also able to make better investing decisions with the information at hand. With vast amounts of data readily available for everyone, it becomes more about interpreting the data rather than just receiving it. Knowing how to block out the noise and find information that is useful, can be a highly coveted skill. Turning available information into a winning portfolio is where the good investor can become a great investor.