Diageo Technical Analysis (NYSE:DEO)
Technical chart patterns are studied in depth by people who strongly believe in technical analysis. These type of investors who look at trading charts or technical stock charts are usually traders rather than value investors. The Diageo stock price data and volume are plotted in DEO stock charts and these trading charts form the basis of technical analysis.
View technical indicators like moving averages (SMA and EMA), and bollinger bands for Diageo. Technical analysis is used by finance professionals and is popular among traders, especially day traders. Undertaking Diageo stock analysis using these technical indicators helps identify trading opportunities.
Diageo Moving Average:
Moving averages show the DEO stock price trend. The two most popular types of moving averages are the Simple Moving Average (SMA) and the Exponential Moving Average (EMA). The 20 day moving average of $134.35 is below the last closing price of $135.86 and the 50 day moving average of $129.55 is below the $135.86 price. The 10 and 20 day periods can predict short term moving average trends.
Diageo Bollinger Bands:
Bollinger bands consist of two price bands above and below a center line for any company stock like Diageo. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. 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 assess the stock price trend. Traders usually wait for a confirmed crossover signal before entering into a trading position. Divergence implies that the current stock price trend could come to an end, when the stock price diverges from MACD. The Diageo MACD indicator can be used to identify bullish and bearish trends for the stock.
Diageo Relative Strength Index:
This technical indicator compares the relative strength or weakness of a stock. It measures the magnitude of rise or fall in stock price movements . 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. .