Broadwind Energy Technical Analysis (NASDAQ:BWEN)
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 Broadwind Energy 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 BWEN stock chart which creates a trading signal.
See Broadwind Energy 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 Broadwind Energy stock analysis.
Broadwind Energy Moving Average
Moving averages help predict the price direction of BWEN 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 Broadwind Energy are mostly signals of long term trends and will help long term traders.
Broadwind Energy Bollinger Bands
Bollinger bands comprise of a center line usually BWEN SMA, and two BWEN 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 $2.22 is in the upper range of Broadwind Energy bollinger bands.
Broadwind Energy 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 Broadwind Energy MACD indicator is above 0 indicating a bullish trend.
Broadwind Energy 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 . If the RSI of BWEN stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.