Is Momentum Building For Raymond James Financial (RJF)? Chikou Jumps Above Tenkan

Raymond James Financial (RJF) shares have made it to technical trader’s radar as the stock’s Chikou line has crossed above the Tenkan.  The Ichimoku Kinko Hyo technique offers the chance to obtain many different types of operating signals through the use of a single graph. As for all trading techniques, when we are using the Ichimoku Kinko Hyo for our operations, it is always advisable to take into account other elements (volumes, sentiment, seasonality, oscillators, etc …), but certainly the immediate graphic  understanding of the trend and its evolution represent the strongest point of the Ichimoku technique.  The Chikou span is the lagging indicator component of the Ichimoku Kinko Hyo candlestick trading model. The Chikou is a line of the most recent price action, but it is plotted 26 trading periods into the past. Chikou spans are designed to allow traders to visualize the relationship between current and prior trends. Trading signals based on the Chikou span are strongest when it does not touch or cross over any the prior candles.

As we move deeper into earnings season, investors may be trying to figure out how to best position the portfolio for the rest of the calendar year. Maybe things haven’t gone as well as planned in the first half of the year, and a few tweaks need to be made to bolster profits in the second half. Closely watching the earnings reports may be a good way to see what companies are getting things right, and what companies have some work to do. Many investors will take notice if a company posts a much larger earnings beat or miss than expected. Not only will the stock most likely become a bit more volatile, but overall interest may be heightened as investors try to piece together the puzzle and figure out why there was such a discrepancy between estimates and actuals. Once the dust settles and the picture becomes a little clearer, investors may be able to properly rotate in or out of a certain name or sector. Finding stocks that look good on paper but have fallen out of favor with certain investors may be a good place to start doing some further number crunching. Locating those overlooked sectors with growth potential might be a good way to uncover those stocks that are ready to make a run.   

Traders are taking a closer look at shares of Raymond James Financial (RJF) of late. The 14-day RSI is presently at 73.99, the 7-day is at 83.79, and the 3-day is resting at 91.21. The Relative Strength Index (RSI) is one of various popular technical indicators developed by J. Welles Wilder. Wilder introduced RSI in his publication “New Concepts in Technical Trading Systems” which was released in 1978. RSI measures the magnitude and velocity of directional price movements. The data is represented graphically by fluctuating between a value of 0 and 100. The indicator is computed by using the average losses and gains of a stock over a certain time period. RSI can be used to help spot overbought or oversold conditions. An RSI reading over 70 would be considered overbought, and a reading under 30 would indicate oversold conditions. A level of 50 would indicate neutral market momentum.

In terms of CCI levels, Raymond James Financial (RJF) currently has a 14-day Commodity Channel Index (CCI) of 113.09. 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 14-day ADX is 30.53. Many technical chart analysts believe that an ADX reading over 25 would suggest a strong trend. A level under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal. The ADX is typically plotted along with two other directional movement indicator lines, the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI). Some analysts believe that the ADX is one of the best trend strength indicators available.

Investors may be studying other technical indicators like the Williams Percent Range or Williams %R. The Williams %R is a momentum indicator that helps measure oversold and overbought levels. This indicator compares the closing price of a stock in relation to the highs and lows over a certain time period. A common look back period is 14 days. Raymond James Financial (RJF)’s Williams %R presently stands at -2.44. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would indicate an overbought situation. A reading from -80 to -100 would indicate an oversold situation. Looking at some moving average levels, the 200-day is at 84.35, the 50-day is 82.70, and the 7-day is sitting at 87.70. Moving averages can help identify trends and price reversals. They may also be used to help spot support and 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.

Dedicated investors tend to spend a lot of time trying to decipher the correct procedure for beating the stock market. This may involve figuring out a proper strategy, and deciding which stocks to start with when constructing a portfolio. Building a portfolio does not have to be a frantic race. In fact, not rushing into things may end up putting the investor in a good position to succeed. There are times when tough decisions need to be made when dealing with the equity market. Spending enough time to assess all the possibilities before making an investing decision may pay off down the road. As most investors know, there is no magic formula for coming out a winner in the stock market. Acquiring the most possible knowledge about the markets and individual stocks can play a vital role in the long-term success of the individual investor.