Acasti Pharma Technical Analysis (NASDAQ:ACST)
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 Acasti Pharma stock price data and volume are plotted in ACST stock charts and these trading charts form the basis of technical analysis.
See Acasti Pharma bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. The technical analysis form of Acasti Pharma stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Acasti Pharma Moving Average
Moving averages help predict the price direction of ACST stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for Acasti Pharma are mostly signals of long term trends and will help long term traders.
Acasti Pharma Bollinger Bands
Bollinger bands comprise of a center line usually ACST SMA, and two ACST stock price bands above and below it. The stock is considered overbought when the price starts moving closer towards the upper band, and is considered oversold as stock price moves closer towards the lower band. The stock price is trading between the average and the upper band in the context of Acasti Pharma bollinger bands.
Acasti Pharma 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 Acasti Pharma MACD line is above the signal line.
Acasti Pharma 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. If the RSI of ACST stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.