Hamilton Lane Incorporated Cl A (HLNE) Relative Momentum Continuing to Trend Higher

Shares of Hamilton Lane Incorporated Cl A (HLNE) have seen the Relative Momentum Indicator (RMI) climb higher over the past 5 sessions.  When this occurs, traders will be watching closely to see if the price breaks through a key level into overbought territory.  

The Relative Momentum Index was created by Roger Altman and was first published in his article in a1993 issue of Technical Analysis of Stocks & Commodities magazine. Altman described the indicator in the following way:

““the RSI is modified by counting up and down days starting from today’s close relative to the close Y days ago, where Y is not necessarily 1 as required by the RSI. The RSI is released from the arbitrary restriction of comparing consecutive days for price changes” changing the  period to 20 days, but with Y set at 5 instead of 1 makes it  “easier to anticipate tradable reversal points compared with the one-parameter RSI. This modification is called the relative momentum index (RMI), in which momentum is substituted for strength, because a momentum index is usually obtained by creating a moving average of the most recent closing price compared with the close Y days in the past.”

Similar to the RSI, the RMI fluctuates between 0-100, where a reading crossing 70 would indicate overbought territory and under 30 Oversold.  

Investors might be trying to step up their game in order to play a more active role with their investments. Investors who keep a close watch on what is happening with their money may be putting themselves in a good spot to attain financial success in the markets. Being knowledgeable and comfortable about investments may be a great way to be certain that the hard earned money is working for the individual. Wise investors typically have a detailed plan that entails realistic expectations about profits in the stock market. There will always be risks dealing with the equity market, but hoping to get lucky may lead to severe losses and other pitfalls down the road. Everyone may have a different risk threshold when it comes to investing. It may be highly important to evaluate one’s own overall financial situation before going full throttle into the markets.

As traders are trying to figure out whether it is a good time to enter or exit a position in Hamilton Lane Incorporated Cl A (HLNE), the Average Directional Index or ADX is a another technical analysis indicator used to describe if a market is trending or not trending. The ADX alone measures trend strength but not direction. Using the ADX with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) may help determine the direction of the trend as well as the overall momentum. Many traders will use the ADX alongside other indicators in order to help spot proper trading entry/exit points. Currently, the 14-day ADX is 20.90. Generally speaking, 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.

Hamilton Lane Incorporated Cl A (HLNE) presently has a 14-day Commodity Channel Index (CCI) of 208.33. 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. The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of stock price movements. The RSI was developed by J. Welles Wilder, and it 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. RSI can be used to detect general trends as well as finding divergences and failure swings. The 14-day RSI for Hamilton Lane Incorporated Cl A (HLNE) is currently at 69.01, the 7-day stands at 78.87, and the 3-day is sitting at 90.33.

Taking a peek at some Moving Averages, the 200-day is at 42.48, and the 50-day is 44.10. Dedicated investors may be looking to employ another tool for doing technical stock analysis. The Williams Percent Range or Williams %R is a technical indicator that was designed to measure overbought and oversold market conditions. The Williams %R indicator helps show the relative situation of the current price close to the period being observed. Hamilton Lane Incorporated Cl A (HLNE)’s Williams Percent Range or 14 day Williams %R presently is at -4.16. In general, if the reading goes above -20, the stock may be considered to be overbought. Alternately, if the indicator goes under -80, this may show the stock as being oversold.

Most investors are aware that not all stocks will be performing well at the same time. Different stocks may have alternate reactions to various economic factors, world events, and business happenings. When one stock is up, another one might be on the way down. Keeping the portfolio full of names from different sectors can help offset imbalances when one stock or sector may be performing poorly while another stock or sector is doing well. Diversification is typically recommended with all types of investing. Many factors may come into play when trying to pick the right stocks to own. Investors may want to figure out how much they are willing to risk, and what kinds of returns they are looking for. Many beginner investors may not be comfortable picking stocks on their own. Seeking professional advice may be one avenue to pursue, but it is usually a good idea to know exactly what holdings are in the portfolio at all times, as markets can move quickly and without notice.