Rayonier Advanced Materials Inc. (RYAM)

RYAM stock forecast: buy or sell

RYAM stock outlook

  • Rayonier Advanced Materials closed today at $2.75 after dropping a -3.17%.
  • From the chart point view, price is drawing an scaled downtrend since April 2019 with lower tops and lower bottoms. this downtrend marked a -82.26% loss(from its highs at $15.50).
  • 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.
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Important note:
The opinions given in this post are personal and not recommendations for you to buy or sell shares. The author of this text does not have an understanding of the particular positions of the reader, his or her financial statements 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 Viewpoints are published for education motives only

RYAM stock chart overview

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?

In the current situation of Rayonier Advanced Materials there is not any eligible buy setup. This doesn't mean RYAM will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell Rayonier Advanced Materials stock?

When is it time to sell Rayonier Advanced Materials stock?. Trading strategies let us to avoid impulsive decisions based on our personal moods or the noise that surrounds the market. We like very simple strategies to guide us on when is the best time to sell our shares. Be aware that these strategies should not be used for selling short Rayonier Advanced Materials stock

As a golden rule, you should never keep an investment that leads to losses greater than those expected by the time of the buy. The timing to sell your stock always has to be ruled 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

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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

In the last month, just one rating was published for Rayonier Advanced Materials

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Rayonier Advanced Materials ratings

Brokerage firmRating
Jun 19th, 2020
Bank of America SellStrong buy

Technical analysis

Rayonier Advanced Materials accumulates a selloff of -82.26% since its latest top April 2019 at $15.50. Like in all downtrends, the stock oscillates drawing lower tops and bottoms. In this case, we have seen 9 consecutive lower tops

SMAs overview

A favorite tool of many technical analysts are the moving averages, that easily show market direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages. You can found more about Moving Averages from sources like Wikipedia and Investopedia

Supports and resistances

Technical analysts use supports and resistances to spot price points on a chart that may behave as barriers, containing the price of a stock to move up or down. A support level is a level where the price tends to stop as it falls. Price is more likely to "rebound" this level rather than break through it. However, if the price breaks down the support, it is likely to continue falling until meeting another support level. On the other side, a resistance level is where the price tends to find a curb as it moves up. In the same way, this means that the price is more liable to "rebound" at this level, and if it finally breaches this level, the price will climb more easily until it finds the next resistance

The current resistance levels are:

  • R1: $22.30 (710.91% above)
  • Price is at lows and there are not lower support levels.

    Bollinger bands

    The so-called Bollinger bands are a popular practice designed by John Bollinger. In essence, the Bollinger Bands are lines that move around a centralmoving average, ranging the distance from the bottom to the top depending on market volatility. They are usually plotted by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. It is intended to chart the current and previous weakness or strength of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI fluctuates between 0 and 100. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by stock traders

    The RSI dropped below the overbought level of 70 in early June after just crossing to the overbough zone for 1 day (weak signal). The RSI reading today was 53.47. Since RSI lost the overbought zone, Rayonier Advanced Materials shares sank a 12.42%

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    Earnings and financials

    First-quarter shareholders event was hosted by RYAM in early May after presenting the financial report. RYAM beat analysts estimates and reported an Earnings per Share of $-0.39, that is a 15.22% surprise versus the previous predictions of $-0.46. Reported sales were $410.0 million versus estimates of $427.8 million.

    By comparison, the EPS for the same quarter last year was $-0.52, so posted EPS is a increase of 25%. Looking at turnover, figures sank a -15.11% compared to $483.0M year over year.

    RYAM will host the Q2 earnings call on late next July. Analysts expect a per-share earnings of %s of $-0.31, that is a 20.51% higher than Q1. If you hold or you are planning to buy RYAM shares, you must be vigilant as financial reporting day usually has a very high volatility, and price can soar and sink with unsually low liquidity and not respecting your buy/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.

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