Erickson Technical Analysis (NASDAQ:EAC)
Technical analysis is the study of technical chart patterns and does not rely on the financials of a company. When a chart pattern that can predict future Erickson stock price movements is formed, the EAC stock chart can become a key tool for a technical analyst.
See Erickson bollinger bands, SMA (200 day moving average, 50 day moving average) and exponential moving averages. The technical analysis form of Erickson stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Erickson Moving Average:
Moving averages help predict the price direction of EAC stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. Moving averages can be used for EAC trend identification. A rising moving average shows that stock prices are generally increasing.
Erickson Bollinger Bands:
Bollinger bands consist of two price bands above and below a center line for any company stock like Erickson. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. The stock price is trading between the average and the lower band in the context of Erickson bollinger bands.
Erickson Moving Average Convergence Divergence or MACD:
The moving average convergence divergence or MACD is a technical indicator which helps assess the stock price trend. Traders usually wait for a confirmed crossover signal before entering into a trading position. Divergence implies that the current stock price trend could come to an end, when the stock price diverges from MACD. The Erickson MACD indicator is above 0 indicating a bullish trend.
Erickson Relative Strength Index:
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of EAC stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position. .