Ariad Pharma Technical Analysis (NASDAQ:ARIA)
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 Ariad Pharma 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 ARIA stock chart which creates a trading signal.
See Ariad Pharma 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 Ariad Pharma stock analysis.
Ariad Pharma Moving Average
Moving averages show the ARIA stock price trend. The two most popular types of moving averages are the Simple Moving Average or SMA and the Exponential Moving Average or EMA. A key factor that impacts moving averages is the lag factor. The 20 day moving average of $23.79 is below the price of $23.99.
Ariad Pharma Bollinger Bands
Bollinger bands comprise of a center line usually ARIA SMA, and two ARIA 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. Ariad Pharma bollinger bands show that the stock price is $23.99, upper band is 23.99, lower band is 23.6, and the average is 23.79.
Ariad Pharma 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 Ariad Pharma MACD line is above the signal line.
Ariad Pharma Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of ARIA stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.