Dril-Quip Technical Analysis (NYSE:DRQ)
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 Dril-Quip 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 DRQ stock chart which creates a trading signal.
See Dril-Quip bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. The technical analysis form of Dril-Quip stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Dril-Quip Moving Average
Moving averages show the DRQ 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. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for Dril-Quip are mostly signals of long term trends and will help long term traders.
Dril-Quip Bollinger Bands
Bollinger bands comprise of a center line usually DRQ SMA, and two DRQ stock price bands above and below it. The stock is considered overbought when the price starts moving closer towards the upper band, and is considered oversold as stock price moves closer towards the lower band. Currently the stock price of $44.55 is in the lower range of Dril-Quip bollinger bands.
Dril-Quip 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 Dril-Quip MACD indicator can be used to identify bullish and bearish trends for the stock.
Dril-Quip Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of DRQ stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.