Cavium Technical Analysis (NASDAQ:CAVM)
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. The Cavium stock price data and volume are plotted in CAVM stock charts and these trading charts form the basis of technical analysis.
View technical indicators like moving averages (SMA and EMA), and bollinger bands for Cavium. Technical analysis is used by finance professionals and is popular among traders, especially day traders. Undertaking Cavium stock analysis using these technical indicators helps identify trading opportunities.
Cavium Moving Average:
Moving averages help predict the price direction of CAVM 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 Cavium are mostly signals of long term trends and will help long term traders.
Cavium Bollinger Bands:
Bollinger Bands were developed by the famous technical trader John Bollinger and are a measure of the volatility of a stock like the CAVM stock. Cavium bollinger bands show that the stock price is $61.13, upper band is 21.43, lower band is 15.47, and the average is 18.45.
Cavium 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 Cavium MACD line is above the signal line.
Cavium 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 CAVM stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position. .