| Marsh & McLennan is a holding company. Through its subsidiaries, Co. is a services firm in the areas of risk, strategy and people. Co.'s segments are: Risk and Insurance Services, which includes risk management activities such as risk advice, risk transfer and risk control and mitigation solutions, as well as insurance and reinsurance broking and services; and Consulting, which includes health, wealth and career solutions and products, and other management, strategic, economic and brand consulting services. Co. conducts business in Risk and Insurance Services segment through Marsh and Guy Carpenter. Co. conducts business in Consulting segment through Mercer and Oliver Wyman Group. |
When researching a stock like Marsh and McLennan Companies, 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 MMC 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 MMC stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of these ways is called the Relative Strength Index, or RSI. This popular indicator, originally developed in the 1970's by J. Welles Wilder, looks at a 14-day moving average of a stock's gains on its up days, versus its losses on its down days. The resulting MMC RSI is a value that measures momentum, oscillating between "oversold" and "overbought" on a scale of zero to 100. A reading below 30 is viewed to be oversold, which a bullish investor could look to as a sign that the selling is in the process of exhausting itself, and look for entry point opportunities. A reading above 70 is viewed to be overbought, which could indicate that a rally in progress is starting to get crowded with buyers. If the rally has been a long one, that could be a sign that a pullback is overdue.