Allete Technical Analysis (NYSE:ALE)
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. Just by looking at the Allete stock price one can't take a trading decision. A trader needs to find a chart pattern, which is a clear cut pattern formation on the ALE stock chart which creates a trading signal.
View technical indicators like moving averages - SMA and EMA, and bollinger bands for Allete. 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 Allete stock analysis.
Allete Moving Average
Moving averages help predict the price direction of ALE 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 Allete are mostly signals of long term trends and will help long term traders.
Allete Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Allete. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Allete bollinger bands show that the stock price is $78.96, upper band is 79.48, lower band is 75.88, and the average is 77.68.
Allete 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 Allete MACD line is below the signal line.
Allete 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. 41.79 is the RSI value of ALE stock.