Amedisys Technical Analysis (NASDAQ:AMED)
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. Just by looking at the Amedisys 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 AMED stock chart which creates a trading signal.
See Amedisys bollinger bands, SMA (200 day moving average, 50 day moving average) and exponential moving averages. Technical analysis uses an approach for Amedisys stock analysis that does not care for the fair "value" of a company but uses price and volume data only.
Amedisys Moving Average:
AMED 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 Amedisys chart patterns after the calculations remain the same. The 100 day moving average of 56.52 is above the last closing price of 50.25. One needs to choose the duration of a moving average depending on the investment objective and investment horizon. For periods greater than 100, it takes a larger and longer AMED stock price movement for the moving average to change course.
Amedisys Bollinger Bands:
Bollinger bands comprise of a center line usually AMED SMA, and two AMED stock price bands above and below it. The stock is considered over brought when the price starts moving closer towards the upper band, and is considered oversold as stock price moves closer towards the lower band. Currently the stock price of $50.25 is in the lower range of Amedisys bollinger bands.
Amedisys Moving Average Convergence Divergence or MACD:
The moving average convergence divergence or MACD is a technical indicator which helps gauge the stock price trend, as the indicator is useful in understanding the strength, direction and momentum of the stock price. The Amedisys MACD indicator is above 0 indicating a bullish trend.
Amedisys 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 AMED stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position. .