Diageo Technical Analysis (NYSE:DEO)
Technical analysis is based on the study of past price and volume movements of a security with the help of technical stock charts or trading charts. The Diageo stock price data and volume are plotted in DEO stock charts and these trading charts form the basis of technical analysis.
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 Diageo. The technical analysis form of Diageo stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Diageo Moving Average
Moving averages show the average price of DEO 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 Diageo are mostly signals of long term trends and will help long term traders.
Diageo 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 DEO stock. The stock price is trading between the average and the lower band in the context of Diageo bollinger bands.
Diageo 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 Diageo MACD indicator can be used to identify bullish and bearish trends for the stock.
Diageo Relative Strength Index
The relative strength index compares the magnitude of recent gains to recent losses and is a momentum indicator. It attempts to assess overbought and oversold conditions of a stock. If the RSI of DEO stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.