Delphi Automotive Technical Analysis (NYSE:DLPH)
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 Delphi Automotive stock price data and volume are plotted in DLPH stock charts and these trading charts form the basis of technical analysis.
See Delphi Automotive bollinger bands, SMA (200 day moving average, 50 day moving average) and exponential moving averages. 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 Delphi Automotive stock analysis.
Delphi Automotive Moving Average:
Moving averages help predict the price direction of DLPH stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. One needs to choose the duration of a moving average depending on the investment objective and investment horizon. For periods greater than 100, it takes a larger and longer DLPH stock price movement for the moving average to change course.
Delphi Automotive Bollinger Bands:
Bollinger bands comprise of a center line usually DLPH SMA, and two DLPH stock price bands above and below it. The stock is considered over brought when the price starts moving closer towards the upper band, and is considered oversold as stock price moves closer towards the lower band. The stock price is trading between the average and the lower band in the context of Delphi Automotive bollinger bands.
Delphi Automotive 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 Delphi Automotive MACD indicator can be used to identify bullish and bearish trends for the stock.
Delphi Automotive Relative Strength Index:
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. The relative strength index of DLPH stock is 35.9. .