Over the course of one week, shares of Rent-A-Center (NASDAQ:$RCII) have dropped -5.33%. Likely, the rent-to-own company will see an Average Broker Rating of 2, or a ‘Buy’. Analysts have suggested that the stock might have room to move still, giving it an average price target of $12.25. This would indicate that the stock could rise as much as $1.52 more.
Taking a look at some indicators, Rent-A-Center currently has a Stochastic Oscillator of 27.01%. When a stock rises above 80 on the %D, it signals that the stock is overbought and there may soon be a potential price drop, whereas %D ratings that drop below 20 indicate the stock may be oversold and might soon see a surge upwards. This tool is useful for technicians who use it to measure the speed and momentum of price movement. The oscillator also carries the added benefit of being straightforward and easy to understand.
The %D can represent the location of a previous close call relative to the price range over a set number of trading sessions. Put simply, by pulling the two lines on the %D apart we see the first line – the %K line – analyzes actual price movements, whereas the second line – the %D line – is a simple 3 day moving average of the %K line. This indicator can be used in three main ways, but traders should always closely follow the %D line as it can help identify trends.
With a recent bid of $10.73 and a technical support at $10.52, a breakdown in this region would signal a significantly bearish trend for the stock. No matter what position you are coming from, any dip below $10.30 a share would be a very negative signal for the firm’s technical picture in the coming term. This level would represent a $10.30 downside from the current price. However, if shares stay above the price resistance of $10.95, shares could go on to face the next line of resistance at $11.16 a share. In the last month, the company has had an average volatility of 3.34%. The company has a 52 week high of $13.89 and a 52 week low of $7.76.
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