Aspen Technology Technical Analysis (NASDAQ:AZPN)
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 AZPN stock chart pattern can give those who understand technical analysis an indication of which way AZPN stock is headed, but cannot predict with 100% certainty as to what can happen to the Aspen Technology stock price.
See Aspen Technology bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. Technical analysis uses an approach for Aspen Technology stock analysis that does not care for the fair value of a company but uses price and volume data only.
Aspen Technology Moving Average
Moving averages help predict the price direction of AZPN 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 Aspen Technology are mostly signals of long term trends and will help long term traders.
Aspen Technology Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Aspen Technology. 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 Aspen Technology bollinger bands.
Aspen Technology 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 Aspen Technology MACD indicator can be used to identify bullish and bearish trends for the stock.
Aspen Technology Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of AZPN stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.