Applied Optoelectronics Technical Analysis (NASDAQ:AAOI)
Technical analysis is the study of stock price and volume data through technical charts. This analysis does not take into account the intrinsic value of a stock. The Applied Optoelectronics stock price data and volume are plotted in AAOI stock charts and these trading charts form the basis of technical analysis.
See Applied Optoelectronics bollinger bands, SMA (200 day moving average, 50 day moving average) and exponential moving averages. 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 Applied Optoelectronics stock analysis.
Applied Optoelectronics Moving Average:
AAOI 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 Applied Optoelectronics chart patterns after the calculations remain the same. The 100 day moving average of 65.18 is below the last closing price of 65.79. The 20 day moving average of $82.91 is above the last closing price of $65.79 and the 50 day moving average of $73.86 is above the $65.79 price. The 10 and 20 day periods can predict short term moving average trends.
Applied Optoelectronics Bollinger Bands:
Bollinger bands consist of two price bands above and below a center line for any company stock like Applied Optoelectronics. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. The stock price is trading between the average and the lower band in the context of Applied Optoelectronics bollinger bands.
Applied Optoelectronics 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 Applied Optoelectronics MACD line is above the signal line.
Applied Optoelectronics 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 AAOI stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position. .