Dreamworks Animation Technical Analysis (NASDAQ:DWA)
Technical analysis is based on the study of past price and volume movements of a security with the help of technical stock charts or trading charts. The DWA stock chart pattern can give those who understand technical analysis an indication of which way DWA stock is headed, but cannot predict with 100% certainty as to what can happen to the Dreamworks Animation stock price.
See Dreamworks Animation 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 Dreamworks Animation stock analysis.
Dreamworks Animation Moving Average
Moving averages help predict the price direction of DWA stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. A key factor that impacts moving averages is the lag factor. The 20 day moving average of $40.98 is above the price of $40.97.
Dreamworks Animation Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Dreamworks Animation. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Currently the stock price of $40.97 is in the lower range of Dreamworks Animation bollinger bands.
Dreamworks Animation 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 Dreamworks Animation MACD line is above the signal line.
Dreamworks Animation Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of DWA stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.