Amira Nature Foods Technical Analysis (NYSE:ANFI)
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. Just by looking at the Amira Nature Foods 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 ANFI stock chart which creates a trading signal.
See Amira Nature Foods bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. Technical analysis uses an approach for Amira Nature Foods stock analysis that does not care for the fair value of a company but uses price and volume data only.
Amira Nature Foods Moving Average
Moving averages help predict the price direction of ANFI 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 Amira Nature Foods are mostly signals of long term trends and will help long term traders.
Amira Nature Foods Bollinger Bands
Bollinger bands comprise of a center line usually ANFI SMA, and two ANFI stock price bands above and below it. The stock is considered overbought 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 $3.98 is in the lower range of Amira Nature Foods bollinger bands.
Amira Nature Foods 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 Amira Nature Foods MACD indicator is below 0 indicating a bearish trend.
Amira Nature Foods Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of ANFI stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.