Tiffany Improved Its Relative Price Performance but Is It Enough?

Tiffany has improved its RS (Relative Strength) rating from 69 to 73 but is still short of that magical figure of 80. Decades of market research dictate that those stocks that are considered as the best bets in the market have a minimum rating of 80.


Relative strength is actually a momentum investing technique where the performance of a stock is compared to the overall market. Using this indicator, the investors identify which will be the top performers in a selected group of potential investments. The performance of each security can be compared to others in the same sector or to a selected benchmark index.

It’s the proprietary of IBD (Investor’s Business Daily), which tracks the securities on the scale of 1 to 99 with 1 being the worst and 99 the best rating score. This score shows the performance of the stock in the last 52 weeks against other stocks.

Following the improvement in the rating, the volume of shares traded on Tuesday rose to 3.7 million as against the average volume of 1.48 million shares. A healthy volume ensures that if you trade in a particular stock you don’t get stuck in a position.

The investors also compare the stock price to its moving day averages before investing in a particular company. Tiffany’s shares are 3.15% away from its 20-day average and 0.54% away from its 50-day moving average. Taking a long-term perspective, they are 4.89% away from the 200-day moving average. For technical stock analysis, these moving averages work as strong indicators. It helps the technical analysts figure out where the stock is and in which direction the probability of moving lies.

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