Canadian National Railway Technical Analysis (NYSE:CNI)
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 Canadian National Railway stock price data and volume are plotted in CNI stock charts and these trading charts form the basis of technical analysis.
See Canadian National Railway bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. The technical analysis form of Canadian National Railway stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Canadian National Railway Moving Average
Moving averages show the average price of CNI stock over a set time period and help traders see the overall trend by smoothening out the daily variation in price movement. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for Canadian National Railway are mostly signals of long term trends and will help long term traders.
Canadian National Railway Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Canadian National Railway. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Currently the stock price of $73.63 is in the lower range of Canadian National Railway bollinger bands.
Canadian National Railway 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 Canadian National Railway MACD line is below the signal line.
Canadian National Railway Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of CNI stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.