Home BancShares Technical Analysis (NASDAQ:HOMB)
Technical analysis is the study of technical chart patterns and does not rely on the financials of a company. Just by looking at the Home BancShares stock price one can't take a trading decision. A trader needs to find a chart pattern, which is a clear cut pattern formation on the HOMB stock chart which creates a trading signal.
See Home BancShares bollinger bands, SMA (200 day moving average, 50 day moving average) and exponential moving averages. Technical analysis is used by finance professionals and is popular among traders, especially day traders. Undertaking Home BancShares stock analysis using these technical indicators helps identify trading opportunities.
Home BancShares Moving Average:
HOMB stock price movements can be forecasted by using triggers based on moving averages, which are also some of the simplest technical indicators. The way the averages are calculated in each of the 2 popular cases, that is SMA and EMA varies, however the interpretation of Home BancShares chart patterns after the calculations remain the same. The 100 day moving average of 119.65 is below the last closing price of 28.01. A rise in trend over the long term indicates a long term uptrend. Similarly a falling HOMB moving average implies that Home BancShares stock price is falling.
Home BancShares Bollinger Bands:
Bollinger bands consist of two price bands above and below a center line for any company stock like Home BancShares. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Home BancShares bollinger bands show that the stock price is $28.01, upper band is 70.1, lower band is 65.06, and the average is 67.58.
Home BancShares Moving Average Convergence Divergence or MACD:
Two important concepts with respect to moving average convergence divergence or MACD are: crossovers and divergence. When the MACD rises above the signal line, it typically indicates a bullish trend and most likely the stock prices will go up. The Home BancShares MACD indicator is below 0 indicating a bearish trend.
Home BancShares 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. The relative strength index of HOMB stock is 86.48. .