Ally Financial Technical Analysis (NYSE:ALLY)
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 ALLY stock chart pattern can give those who understand technical analysis an indication of which way ALLY stock is headed, but cannot predict with 100% certainty as to what can happen to the Ally Financial stock price.
See Ally Financial bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. The technical analysis form of Ally Financial stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Ally Financial Moving Average
Moving averages help predict the price direction of ALLY 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 Ally Financial are mostly signals of long term trends and will help long term traders.
Ally Financial Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Ally Financial. 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 Ally Financial bollinger bands.
Ally Financial 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 Ally Financial MACD indicator is below 0 indicating a bearish trend.
Ally Financial 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 ALLY stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.