Brocade Technical Analysis (NASDAQ:BRCD)
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. Just by looking at the Brocade 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 BRCD stock chart which creates a trading signal.
See Brocade bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. Technical analysis uses an approach for Brocade stock analysis that does not care for the fair value of a company but uses price and volume data only.
Brocade Moving Average
Moving averages show the average price of BRCD stock over a set time period and help traders see the overall trend by smoothening out the daily variation in price movement. The 20 day moving average of $12.23 is below the last closing price of $12.73 and the 50 day moving average of $12.14 is below the last closing price of $12.73. The 10 and 20 day periods can predict short term moving average trends.
Brocade Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Brocade. 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 Brocade bollinger bands.
Brocade 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 Brocade MACD indicator is below 0 indicating a bearish trend.
Brocade Relative Strength Index
This technical indicator compares the relative strength or weakness of a stock. It measures the magnitude of rise or fall in stock price movements . 78.1 is the RSI value of BRCD stock.