Transocean Ltd (RIG) shares are being closely watched as the Rank Correlation Indicator has shown an upward 3 bar near-term trend, indicating that a reversal might be near. If the shares reach the +80 level, this would signify that the shares have entered overbought territory.
The indicator Spearman Rank Correlation Index’s (RCI) is a statistical oscillator based on the correlation model provided by the mathematician Charles Spearman. The indicator shows statistical relations between date and price as a correlation without the relationship between the two variables is of affine type. The idea is to find correlation between the ranks of values instead of the values themselves.
Shares of Transocean Ltd (RIG) have recently come under renewed examination and hence we’ll take note of some additional indicators. The Relative Strength Index (RSI) is one of multiple popular technical indicators created by J. Welles Wilder. Wilder introduced RSI in his book “New Concepts in Technical Trading Systems” which was published 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. Checking on the Relative Strength Index, the 14-day RSI is presently standing at 46.82, the 7-day is 57.31, and the 3-day is resting at 79.05.
Currently, the 14-day ADX for Transocean Ltd (RIG) is sitting at 27.07. 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.
Investors have the ability to use technical indicators when completing stock research. At the time of writing, Transocean Ltd (RIG) has a 14-day Commodity Channel Index (CCI) of 76.25. Developed by Donald Lambert, the CCI is a versatile tool that may be used to help spot an emerging trend or provide warning of extreme conditions. In terms of Moving Averages, the 7-day is resting at 8.15. Moving averages have the ability to be used as a powerful indicator for technical stock analysis. 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. Transocean Ltd (RIG)’s Williams Percent Range or 14 day Williams %R currently sits at -42.34. 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.