Indicator Watch: Stochastic RSI in Focus for CytoDyn Inc (CYDY)

Watching the numbers for CytoDyn Inc (CYDY), we have recently spotted a possible bearish divergence using the 14 day Stochastic RSI. Traders may be tracking this reading to identify possible near-term weakness.

Market watchers diligently track the companies they think can do well to grow earnings. The goal is typically to discover stocks that are most likely to outperform in the future. Many investors like to keep tabs on sell-side analyst views. Following the direction estimates are trending may provide a deeper glimpse into the health of a company. Investors may need to follow a disciplined system which may help keep emotions in check when making investment decisions. On the other end, it may be necessary to craft a new strategy if the old system isn’t providing the types of expected returns. It can also become very time-consuming to keep up with shorter-term trends and events. Managing the short-term plan with the long-term plan can be difficult given the existing economic climate.

Tracking other technical indicators, the 14-day RSI is presently standing at 39.18, the 7-day sits at 35.34, and the 3-day is resting at 36.36 for CytoDyn Inc (CYDY). 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.

Interested traders may be keeping an eye on the Williams Percent Range or Williams %R. Williams %R is a popular technical indicator created by Larry Williams to help identify overbought and oversold situations. CytoDyn Inc (CYDY)’s Williams Percent Range or 14 day Williams %R currently sits at -74.05. In general, if the indicator goes above -20, the stock may be considered overbought. Alternately, if the indicator goes below -80, this may point to the stock being oversold.

Currently, the 14-day ADX for CytoDyn Inc (CYDY) is sitting at 19.49. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would identify a very strong trend, and a value of 75-100 would lead to an extremely strong trend. ADX is used to gauge trend strength but not trend direction. Traders often add the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of a trend.

After a recent look, CytoDyn Inc (CYDY) has a 50-day Moving Average of 3.8383, the 200-day Moving Average is 2.8966, and the 7-day is noted at 2.9924. A popular tool among technical stock analysts is the moving average. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a specific period of time. Moving averages can be very useful for identifying peaks and troughs. They may also be used to help the trader figure out proper support and resistance levels for the stock.

Traders may be relying in part on technical stock analysis. CytoDyn Inc (CYDY) currently has a 14-day Commodity Channel Index (CCI) of -71.27. Despite the name, CCI can be used on other investment tools such as stocks. The CCI was designed to typically stay within the reading of -100 to +100. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction. On the other hand, a reading of -100 would imply that the stock is oversold and possibly set for a rally.

Investors may be trying to find stocks that are building momentum. Finding these stocks may help bolster the portfolio going into the second half of the year. Investors often look to pounce on any opportunity in the stock market. Without properly being prepared, these opportunities may disappear quickly. Staying on top of fundamentals, technicals, and earnings, may help investors stay prepared. 

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