Webster Financial Technical Analysis (NYSE:WBS)
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. The Webster Financial stock price data and volume are plotted in WBS stock charts and these trading charts form the basis of technical analysis.
See Webster Financial bollinger bands, SMA (200 day moving average, 50 day moving average) and exponential moving averages. Technical analysis uses an approach for Webster Financial stock analysis that does not care for the fair "value" of a company but uses price and volume data only.
Webster Financial Moving Average:
WBS 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 Webster Financial chart patterns after the calculations remain the same. The 100 day moving average of 18.09 is below the last closing price of 40.51. 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 WBS stock price movement for the moving average to change course.
Webster Financial Bollinger Bands:
Bollinger bands comprise of a center line usually WBS SMA, and two WBS stock price bands above and below it. The stock is considered over brought when the price starts moving closer towards the upper band, and is considered oversold as stock price moves closer towards the lower band. Currently the stock price of $40.51 is in the upper range of Webster Financial bollinger bands.
Webster Financial 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 Webster Financial MACD indicator can be used to identify bullish and bearish trends for the stock.
Webster Financial Relative Strength Index:
This technical indicator compares the relative strength or weakness of a stock. It measures the magnitude of rise or fall in stock price movements . If the RSI of WBS stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position. .