ResMed (RMD) Spotted As Roof Leaker Today

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Trade-Ideas LLC identified ResMed ( RMD) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified ResMed as such a stock due to the following factors:

  • RMD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $50.0 million.
  • RMD has traded 418,078 shares today.
  • RMD is trading at 2.16 times the normal volume for the stock at this time of day.
  • RMD crossed below its 200-day simple moving average.

'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.

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More details on RMD:

ResMed Inc., through its subsidiaries, engages in the development, manufacture, and distribution of medical equipment for treating, diagnosing, and managing sleep-disordered breathing and other respiratory disorders. The stock currently has a dividend yield of 2.2%. RMD has a PE ratio of 21.4. Currently there are 5 analysts that rate ResMed a buy, 1 analyst rates it a sell, and 4 rate it a hold.

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