ResMed is a holding company. Through its subsidiaries, Co. is engaged in the development, manufacturing, distribution and marketing of medical devices and cloud-based software applications that diagnose, treat and manage respiratory disorders, including sleep-disordered breathing, chronic obstructive pulmonary disease, neuromuscular disease and other chronic diseases. Co.'s operating segments are: Sleep and Respiratory Care, which relates primarily to the sale of its products that are therapy-based equipment; and Software as a Service, which relates to the provision of software access with ongoing support and maintenance services as well as services such as training and consulting.
When researching a stock like ResMed, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from RMD Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for RMD stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the RMD 200 day moving average ("RMD 200 DMA"), while one of the most popular "shorter look-backs" is the RMD 50 day moving average ("RMD 50 DMA"). A chart showing both of these popular moving averages is shown on this page for ResMed. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the RMD 200 DMA and the RMD 50 DMA, we get a moving average convergence divergence indicator ("RMD MACD"). The RMD MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
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