Volume is one of the most important and useful concepts to understand when trading stocks but is often overlooked because it is such a simple indicator. Volume information can be found almost everywhere, but few traders or shareholders know how to use this information to boost their profits and minimize risk. Volume gauges how much of a given asset trades in a given period. The fundamental guidelines to analyze volume may not apply in all situations, but on the whole, they can assist direct entry and exit decisions. A rising market should see rising volume because buyers need increasing numbers and enthusiasm to keep pushing prices higher and vice versa. When prices fluctuate on little volume, it’s not a strong signal. But when a rise or drop occurs on large volume, it shows something in the stock has fundamentally changed.
Keeping in mind the above information, we are going to analyze the following two stocks:
- Endo International plc – Ordinary Shares (NASDAQ:ENDP)
- Hanesbrands Inc. (NYSE:HBI)
Relative Strength Index (RSI) – a momentum indicator for the stock is also discussed in this article.
At the time of writing, Shares of Endo International plc – Ordinary Shares (NASDAQ:ENDP) inclined 2.69% or 0.30 points. The stock’s price went up as there were more buyers than sellers in the room. It exchanged hands with 2.19 Million shares lower than its average daily volume of 6.05 Million shares.
The stock closed its last trade at $11.47 per share, after floating in a price range of $11.13 to $11.56. The market capitalization for the company is reported at $2.49 Billion.
The RSI expresses a relative assessment of the strength of a security’s recent price performance, thus making it a momentum indicator. RSI values range from 0 to 100. The default time frame for comparing up periods to down periods is 14, as in 14 trading days. Relative strength indexes (RSI-14) for Endo International plc – Ordinary Shares (NASDAQ:ENDP) is at 48.83. Traditional interpretation and usage of the RSI is that RSI values of 70 or above indicate that a security is becoming overbought or overvalued, and therefore may be ready for a trend reversal or corrective pullback in price. On the other side of RSI values, an RSI reading of 30 or below is generally interpreted as indicating an oversold or undervalued condition that may signal a trend change or corrective price reversal to the upside.
On other hand, Hanesbrands Inc. (NYSE:HBI)’s good performance strengthened its position at the stock market and the stock price went up 0.39% to close its last trade at $23.26. The stock exchanged hands with total of 1.59 Million shares as compared to its average daily volume of 4.08 Million shares. Relative strength index (RSI-14) for HBI is at 69.60.
The market capitalization for the company was reported at $8.53 Billion while the P/E ratio yielded by the company was 16.75. Analysts mean recommendation for the stock is 1.90. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.
The stock is up 7.83% in this year through last updated price, while it has shown weekly upbeat performance of 2.24%, which was maintained at 9.15% in 1-month period.