American Electric Technical Analysis (NASDAQ:AETI)
Technical analysis is based on the study of past price and volume movements of a security with the help of technical stock charts or trading charts. The American Electric stock price data and volume are plotted in AETI stock charts and these trading charts form the basis of technical analysis.
See American Electric 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 American Electric stock analysis.
American Electric Moving Average
Moving averages show the average price of AETI stock over a set time period and help traders see the overall trend by smoothening out the daily variation in price movement. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for American Electric are mostly signals of long term trends and will help long term traders.
American Electric Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like American Electric. 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 American Electric bollinger bands.
American Electric 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 American Electric MACD indicator can be used to identify bullish and bearish trends for the stock.
American Electric 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 AETI stock is 35.34.