Compass Diversified Technical Analysis (NYSE:CODI)
Technical analysis is based on the study of past price and volume movements of a security with the help of technical Charts or trading charts. The CODI Chart pattern can give those who understand technical analysis an indication of which way CODI stock is headed, but cannot predict with 100% certainty as to what can happen to the Compass Diversified Price.
See Compass Diversified bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. The technical analysis form of Compass Diversified Analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Compass Diversified Moving Average
Moving averages help predict the price direction of CODI 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 Compass Diversified are mostly signals of long term trends and will help long term traders.
Compass Diversified Bollinger Bands
Bollinger bands comprise of a center line usually CODI SMA, and two CODI 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 Price moves closer towards the lower band. The Price is trading between the average and the lower band in the context of Compass Diversified bollinger bands.
Compass Diversified 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 Prices will go up. The Compass Diversified MACD line is below the signal line.
Compass Diversified Relative Strength Index
This technical indicator compares the relative strength or weakness of a stock. It measures the magnitude of rise or fall in Price movements . The relative strength index of CODI stock is 51.11.