Avid Tech Technical Analysis (NASDAQ:AVID)
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 AVID stock chart pattern can give those who understand technical analysis an indication of which way AVID stock is headed, but cannot predict with 100% certainty as to what can happen to the Avid Tech stock price.
See Avid Tech 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 Avid Tech stock analysis.
Avid Tech Moving Average
Moving averages help predict the price direction of AVID stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. The 20 day moving average of $5.02 is below the last closing price of $5.39 and the 50 day moving average of $4.89 is below the last closing price of $5.39. The 10 and 20 day periods can predict short term moving average trends.
Avid Tech Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Avid Tech. 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 upper band in the context of Avid Tech bollinger bands.
Avid Tech 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 Avid Tech MACD indicator is below 0 indicating a bearish trend.
Avid Tech 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 AVID stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.