Encana Technical Analysis (NYSE:ECA)
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. Just by looking at the Encana 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 ECA stock chart which creates a trading signal.
See Encana bollinger bands, SMA (200 day moving average, 50 day moving average) and exponential moving averages. The technical analysis form of Encana stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Encana Moving Average:
Moving averages help predict the price direction of ECA stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for Encana are mostly signals of long term trends and will help long term traders.
Encana Bollinger Bands:
Bollinger Bands were developed by the famous technical trader John Bollinger and are a measure of the volatility of a stock like the ECA stock. The stock price is trading between the average and the upper band in the context of Encana bollinger bands.
Encana 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 Encana MACD indicator can be used to identify bullish and bearish trends for the stock.
Encana 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. 26.89 is the RSI value of ECA stock. .