Discovery Communications (Class A) Technical Analysis (NASDAQ:DISCA)
Technical analysis is the study of technical chart patterns and does not rely on the financials of a company. Just by looking at the Discovery Communications (Class A) 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 DISCA stock chart which creates a trading signal.
See Discovery Communications (Class A) bollinger bands, SMA (200 day moving average, 50 day moving average) and exponential moving averages. The technical analysis form of Discovery Communications (Class A) stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Discovery Communications (Class A) Moving Average:
Moving averages help predict the price direction of DISCA stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. The 20 day moving average of $21.68 is above the last closing price of $21.41 and the 50 day moving average of $23.36 is above the $21.41 price. The 10 and 20 day periods can predict short term moving average trends.
Discovery Communications (Class A) Bollinger Bands:
Bollinger Bands developed from the concept of trading bands and can be used to measure the high-low range of Discovery Communications (Class A) stock price relative to previous trades. Currently the stock price of $21.41 is in the lower range of Discovery Communications (Class A) bollinger bands.
Discovery Communications (Class A) 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 Discovery Communications (Class A) MACD indicator can be used to identify bullish and bearish trends for the stock.
Discovery Communications (Class A) Relative Strength Index:
The RSI is a valuable tool to determine overbought / oversold stocks and measures the recent performance of a stock in relation to its own stock price history. If the RSI of DISCA stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position. .