Catasys Technical Analysis (NASDAQ:CATS)
Technical analysis relies on the belief that future price movements of a stock can be forecasted through the study of historical market data and technical charts. Just by looking at the Catasys 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 CATS stock chart which creates a trading signal.
See Catasys bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. Technical analysis uses an approach for Catasys stock analysis that does not care for the fair value of a company but uses price and volume data only.
Catasys Moving Average
Moving averages show the CATS 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. The 20 day moving average of $4.71 is above the last closing price of $4.37 and the 50 day moving average of $4.18 is below the last closing price of $4.37. The 10 and 20 day periods can predict short term moving average trends.
Catasys Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Catasys. 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 lower band in the context of Catasys bollinger bands.
Catasys 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 Catasys MACD indicator can be used to identify bullish and bearish trends for the stock.
Catasys Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. The relative strength index of CATS stock is 32.47.