Honda Technical Analysis (NYSE:HMC)
Technical analysis relies on the belief that future price movements of a stock can be forecasted through the study of historical market data and technical charts. When a chart pattern that can predict future Honda stock price movements is formed, the HMC stock chart can become a key tool for a technical analyst.
View technical indicators like moving averages (SMA and EMA), and bollinger bands for Honda. Technical analysis essentially tries to study the supply and demand for a particular security and determine the stock trends for that security. Chartists use stock price movements for this form of Honda stock analysis.
Honda Moving Average:
Moving averages show the HMC stock price trend. The two most popular types of moving averages are the Simple Moving Average (SMA) and the Exponential Moving Average (EMA). One needs to choose the duration of a moving average depending on the investment objective and investment horizon. For periods greater than 100, it takes a larger and longer HMC stock price movement for the moving average to change course.
Honda Bollinger Bands:
Bollinger Bands developed from the concept of trading bands and can be used to measure the high-low range of Honda stock price relative to previous trades. Currently the stock price of $30.44 is in the lower range of Honda bollinger bands.
Honda Moving Average Convergence Divergence or MACD:
The moving average convergence divergence or MACD is a technical indicator which helps gauge the stock price trend, as the indicator is useful in understanding the strength, direction and momentum of the stock price. The Honda MACD indicator is below 0 indicating a bearish trend.
Honda Relative Strength Index:
The RSI is a valuable tool to determine overbought / oversold stocks and measures the recent performance of a stock in relation to its own stock price history. If the RSI of HMC stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position. .