Discovery Communicatications Technical Analysis (NASDAQ:DISCK)
Technical analysis relies on the belief that future price movements of a stock can be forecasted through the study of historical market data and technical charts. Just by looking at the Discovery Communicatications 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 DISCK stock chart which creates a trading signal.
View technical indicators like moving averages - SMA and EMA, and bollinger bands for Discovery Communicatications. Technical analysis essentially tries to study the supply and demand for a particular security and determine the stock trends for that security. Chartists use stock price movements for this form of Discovery Communicatications stock analysis.
Discovery Communicatications Moving Average
Moving averages show the DISCK stock price trend. The two most popular types of moving averages are the Simple Moving Average or SMA and the Exponential Moving Average or EMA. A key factor that impacts moving averages is the lag factor. The 20 day moving average of $22.42 is below the price of $25.94.
Discovery Communicatications Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Discovery Communicatications. 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 upper band in the context of Discovery Communicatications bollinger bands.
Discovery Communicatications 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 Discovery Communicatications MACD line is below the signal line.
Discovery Communicatications 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 DISCK stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.