Otis Worldwide is an elevator and escalator manufacturing, installation and service company. Co. segments include New Equipment and Service. Co.'s New Equipment segment designs, manufactures, sells and installs a range of passenger and freight elevators, as well as escalators and moving walkways for residential, commercial and infrastructure projects. Co. also provides escalators and moving walkways. Co.'s Service segment performs maintenance and repair services, as well as modernization services to upgrade elevators and escalators. Co. services include inspections, preventive maintenance offerings and other customized maintenance offerings tailored to meet customer needs.
When researching a stock like Otis Worldwide, 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 OTIS 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 OTIS 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 OTIS 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. |
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