China Hydroelectric Technical Analysis (NYSE:CHC)
Technical analysis is the study of stock price and volume data through technical charts. This analysis does not take into account the intrinsic value of a stock. The CHC stock chart pattern can give those who understand technical analysis an indication of which way CHC stock is headed, but cannot predict with 100% certainty as to what can happen to the China Hydroelectric stock price.
See China Hydroelectric 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 China Hydroelectric stock analysis.
China Hydroelectric Moving Average
Moving averages help predict the price direction of CHC 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 China Hydroelectric are mostly signals of long term trends and will help long term traders.
China Hydroelectric 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 CHC stock. The stock price is trading between the average and the upper band in the context of China Hydroelectric bollinger bands.
China Hydroelectric 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 China Hydroelectric MACD line is below the signal line.
China Hydroelectric Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of CHC stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.