American Homes 4 Rent Technical Analysis (NYSE:AMH)
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 American Homes 4 Rent stock price data and volume are plotted in AMH stock charts and these trading charts form the basis of technical analysis.
See American Homes 4 Rent 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 Homes 4 Rent stock analysis.
American Homes 4 Rent Moving Average
Moving averages show the average price of AMH 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 Homes 4 Rent are mostly signals of long term trends and will help long term traders.
American Homes 4 Rent Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like American Homes 4 Rent. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. American Homes 4 Rent bollinger bands show that the stock price is $21.2, upper band is 21.61, lower band is 19.23, and the average is 20.42.
American Homes 4 Rent 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 American Homes 4 Rent MACD indicator can be used to identify bullish and bearish trends for the stock.
American Homes 4 Rent Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of AMH stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.