Capstead Mortgage Technical Analysis (NYSE:CMO)
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 Capstead Mortgage 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 CMO stock chart which creates a trading signal.
You can view Simple Moving Average - SMA 20 day, 50 day & 100 day, Exponential Moving Average - EMA 20 day, 50 day & 100 day charts, and Bollinger Bands for Capstead Mortgage. 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 Capstead Mortgage stock analysis.
Capstead Mortgage Moving Average
Moving averages help predict the price direction of CMO stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. A key factor that impacts moving averages is the lag factor. The 20 day moving average of $8.95 is above the price of $8.57.
Capstead Mortgage Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Capstead Mortgage. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Currently the stock price of $8.57 is in the lower range of Capstead Mortgage bollinger bands.
Capstead Mortgage Moving Average Convergence Divergence or MACD
The moving average convergence divergence or MACD is a technical indicator which helps gauge the stock price trend, as the indicator is useful in understanding the strength, direction and momentum of the stock price. The Capstead Mortgage MACD indicator is below 0 indicating a bearish trend.
Capstead Mortgage Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. 35.34 is the RSI value of CMO stock.