Severn Bancorp Technical Analysis (NASDAQ:SVBI)
Technical analysis is the study of technical chart patterns and does not rely on the financials of a company. Just by looking at the Severn Bancorp 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 SVBI stock chart which creates a trading signal.
See Severn Bancorp bollinger bands, SMA (200 day moving average, 50 day moving average) and exponential moving averages. Technical analysis uses an approach for Severn Bancorp stock analysis that does not care for the fair "value" of a company but uses price and volume data only.
Severn Bancorp Moving Average:
Moving averages show the SVBI 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 SVBI stock price movement for the moving average to change course.
Severn Bancorp Bollinger Bands:
Bollinger bands consist of two price bands above and below a center line for any company stock like Severn Bancorp. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Currently the stock price of $6.5 is in the lower range of Severn Bancorp bollinger bands.
Severn Bancorp 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 Severn Bancorp MACD indicator can be used to identify bullish and bearish trends for the stock.
Severn Bancorp Relative Strength Index:
The relative strength index compares the magnitude of recent gains to recent losses and is a momentum indicator. It attempts to assess overbought and oversold conditions of a stock. The relative strength index of SVBI stock is 61.6. .