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Rayonier Advanced Materials Inc. (RYAM)

RYAM stock forecast: buy or sell

Close on Sep 29th, 2020
$3.21 -0.06%
3 months performance
0.15%
Published: September 29th, 2020 - 8.50pm EDT

RYAM stock outlook

  • Rayonier Advanced Materials stock collapsed -5.87% to close at $3.21 on the stock market today.
  • Price is drawing a scaled uptrend since last April with higher tops and higher bottoms. Up to date, shares marked a 256.67% profit since the beginning of this rally
  • Rayonier Advanced Materials Inc. manufactures and sells cellulose specialty products in the United States, China, Japan, Europe, Latin America, other Asian countries, Canada, and internationally.

Disclaimer:
The thoughts contained in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this document does not have an understanding of the specific scenarios of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are expressed for general educational purposes only

RYAM stock charts

Should I buy Rayonier Advanced Materials stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is RYAM stock a buy?

Currently, Rayonier Advanced Materials stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for RYAM in coming sessions, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell Rayonier Advanced Materials stock?

When is it time to sell Rayonier Advanced Materials?. Like when we have to buy shares, deciding when is appropiate time to sell is not a random decision, and we must adhere our own trading style. When selling, as well as buying, detailed setups are very easy to follow and are only valid for selling shares in your porfolio, not for selling short Rayonier Advanced Materials stock

As a golden rule, you must never hold an open trade that produces greater losses than those expected at the time of the buy. When to sell shares always has to be dictated by the stop-loss (automatic or manual)

Is it time to sell Rayonier Advanced Materials stock?

In the current situation of Rayonier Advanced Materials there is not any eligible sell setup, so Rayonier Advanced Materials stock holders with operations in green can keep their positions

Analysts' recommendations to buy or sell Rayonier Advanced Materials stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

We don't have any rating posted in the previous month for Rayonier Advanced Materials

Technical analysis

Since last April, Rayonier Advanced Materials has been drawing an uptrend that so far marked an amazing 256.67%. During this uptrend, the price offered some buy points on the breakouts. Latest pullback was in mid-August, when price bounced at $2.89. Now, the price swings in a consolidation between its last top ($4.87) and its last bottom ($2.89)

SMAs overview

Moving averages are indicators for traders to gauge market direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days. You can found more about Moving Averages from sources like Wikipedia and Investopedia

RYAM SMAs chart

Supports and resistances

Technical analysts use supports and resistances as a way to spot price points in the stock price action that may act as obstacles, preventing the price of shares to move up or down. A support level is a level where the price tends to find support as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. Nevertheless, if the price breaks down this level, it will probably continue descending until finding another support level. On the other hand, a resistance level is where the price may find resistance as it rises. In the same way, the price is more likely to "rebound" at this level, and if it finally crosses this level, it will climb easily until it hits the next resistance

The current resistance levels are:

  • R1: $3.41 (6.23% above)
  • R2: $3.49 (8.72% above)
  • R3: $3.61 (12.46% above)
  • The current support levels are:

  • S1: $3.02 (-5.92% below)
  • S2: $2.89 (-9.97% below)
  • S3: $2.71 (-15.58% below)
  • Bollinger bands

    The so-called Bollinger bands are a well-established technical strategy created by John Bollinger. By essence, the Bollinger Bands are bands that flow around a centralmoving average, ranging the distance from the bottom to the top depending on market volatility. They are usually plotted by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Since the price surpassed the upper band on September 18, the price has been corrected downwards by 34.09%

    RYAM RSI chart

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that measures price movements to identify when the price of a share or financial asset is overbought or oversold. Like other oscillation indicators, the RSI fluctuates in a range from 0% to 100%. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in 1978

    The RSI dropped below the overbought level of 70 on September 21 after just crossing to the overbough zone for a single day (weak signal). The RSI value today was 42.81. Since that level was lost, Rayonier Advanced Materials price collapsed a 30.82%

    RYAM RSI chart

    Earnings and financials

    2nd-quarter financial event was hosted by RYAM in early August after releasing the earnings report. RYAM surpassed Wall St estimates and reported a per-share earnings of %s of $-0.20, that is a 37.5% increase compared to the forecasts of $-0.32. Reported revenues were $396.8 million compared to estimates of $410.1 million.

    Compared to the same quarter one year ago, EPS was $-0.35, so current EPS is a increase of 42.86%. Sales sank a -18.67% on an annualized basis in the Q2, from $487.8M to $396.8M last quarter.

    RYAM will host the earnings call on early next November. Wall Street predicts earnings of %s per-share of $-0.19, compared to Q2 that made $-0.20. If you own or you are thinking of buying RYAM shares, you must be aware that financial reporting day usually has a higher than usual volatility, and price can jump up or down with very low liquidity and not honouring your buy or stop-loss orders. It's always good to review company's website to confirm time and details on the earnings call and the earnings report.

    RYAM revenues and profits chart