Spansion Technical Analysis (NYSE:CODE)
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. Just by looking at the Spansion 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 CODE stock chart which creates a trading signal.
See Spansion bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. Technical analysis uses an approach for Spansion stock analysis that does not care for the fair value of a company but uses price and volume data only.
Spansion Moving Average
Moving averages help predict the price direction of CODE 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 Spansion are mostly signals of long term trends and will help long term traders.
Spansion Bollinger Bands
Bollinger bands comprise of a center line usually CODE SMA, and two CODE stock price bands above and below it. The stock is considered overbought when the price starts moving closer towards the upper band, and is considered oversold as stock price moves closer towards the lower band. The stock price is trading between the average and the upper band in the context of Spansion bollinger bands.
Spansion 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 Spansion MACD line is below the signal line.
Spansion 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 CODE stock is 60.92.