Reliance Steel & Aluminum Co (RS)
Reliance Steel & Aluminum Co. is a metal service center company. The company is headquartered in Los Angeles, California.
Stock Price Trends
Stock price trends estimated using linear regression.
Key facts
- The primary trend is increasing.
- The growth rate of the primary trend is 14.09% per annum.
- RS price at the close of December 2, 2024 was $319.95 and was inside the primary price channel.
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 10.11% per annum.
- RS price at the close of December 2, 2024 was higher than the top border of the secondary price channel by $2.55 (0.80%). This indicates a possible reversal in the secondary trend direction.
- The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.
Linear Regression Model
Model equation:
Yi = α + β × Xi + εi
Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)
Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)
where:
i - observation number
Yi - natural logarithm of RS price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e
Primary Trend
Start date: February 16, 2023
End date: December 2, 2024
a = 5.0762
b = 0.0004
s = 0.0627
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × 0.0004) – 1
= 14.09%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0627) – 1
= 28.49%
February 16, 2023 calculations
Top border of price channel:
Exp(Y807)
= Exp(a + b × X807 + 2 × s)
= Exp(a + b × 1,171 + 2 × s)
= Exp(5.0762 + 0.0004 × 1,171 + 2 × 0.0627)
= Exp(5.6245)
= $277.13
Bottom border of price channel:
Exp(Y807)
= Exp(a + b × X807 – 2 × s)
= Exp(a + b × 1,171 – 2 × s)
= Exp(5.0762 + 0.0004 × 1,171 – 2 × 0.0627)
= Exp(5.3738)
= $215.69
December 2, 2024 calculations
Top border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(5.0762 + 0.0004 × 1,826 + 2 × 0.0627)
= Exp(5.8611)
= $351.10
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(5.0762 + 0.0004 × 1,826 – 2 × 0.0627)
= Exp(5.6104)
= $273.26
Description
- The primary trend is increasing.
- The growth rate of the primary trend is 14.09% per annum.
- RS price at the close of December 2, 2024 was $319.95 and was inside the primary price channel.
Secondary Trend
Start date: February 15, 2024
End date: December 2, 2024
a = 6.1849
b = -0.0003
s = 0.0542
Annual growth rate:
Exp(365 × b) – 1
= Exp(365 × -0.0003) – 1
= -10.11%
Price channel spread:
Exp(4 × s) – 1
= Exp(4 × 0.0542) – 1
= 24.19%
February 15, 2024 calculations
Top border of price channel:
Exp(Y1,057)
= Exp(a + b × X1,057 + 2 × s)
= Exp(a + b × 1,535 + 2 × s)
= Exp(6.1849 + -0.0003 × 1,535 + 2 × 0.0542)
= Exp(5.8451)
= $345.55
Bottom border of price channel:
Exp(Y1,057)
= Exp(a + b × X1,057 – 2 × s)
= Exp(a + b × 1,535 – 2 × s)
= Exp(6.1849 + -0.0003 × 1,535 – 2 × 0.0542)
= Exp(5.6285)
= $278.24
December 2, 2024 calculations
Top border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(6.1849 + -0.0003 × 1,826 + 2 × 0.0542)
= Exp(5.7602)
= $317.40
Bottom border of price channel:
Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(6.1849 + -0.0003 × 1,826 – 2 × 0.0542)
= Exp(5.5435)
= $255.58
Description
- The secondary trend is decreasing.
- The decline rate of the secondary trend is 10.11% per annum.
- RS price at the close of December 2, 2024 was higher than the top border of the secondary price channel by $2.55 (0.80%). This indicates a possible reversal in the secondary trend direction.