Yahoo Technical Analysis (NASDAQ:YHOO)
Technical analysis is the study of technical chart patterns and does not rely on the financials of a company. The Yahoo stock price data and volume are plotted in YHOO stock charts and these trading charts form the basis of technical analysis.
You can view Simple Moving Average (SMA 20 day, 50 day & 100 day), Exponential Moving Average (EMA 20 day, 50 day & 100 day) charts, and Bollinger Bands for Yahoo. 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 Yahoo stock analysis.
Yahoo Moving Average:
Moving averages show the average price of YHOO stock over a set time period and help traders see the overall trend by smoothening out the daily variation in price movement. 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 YHOO stock price movement for the moving average to change course.
Yahoo Bollinger Bands:
Bollinger Bands developed from the concept of trading bands and can be used to measure the high-low range of Yahoo stock price relative to previous trades.
Yahoo 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 Yahoo MACD indicator can be used to identify bullish and bearish trends for the stock.
Yahoo 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 YHOO stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position. .