Encana Technical Analysis (NYSE:ECA)
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 ECA stock chart pattern can give those who understand technical analysis an indication of which way ECA stock is headed, but cannot predict with 100% certainty as to what can happen to the Encana stock price.
See Encana 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 Encana stock analysis.
Encana Moving Average
Moving averages show the average price of ECA stock over a set time period and help traders see the overall trend by smoothening out the daily variation in price movement. A key factor that impacts moving averages is the lag factor. The 20 day moving average of $11.49 is above the price of $10.73.
Encana Bollinger Bands
Bollinger bands comprise of a center line usually ECA SMA, and two ECA 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. Encana bollinger bands show that the stock price is $10.73, upper band is 13.44, lower band is 9.55, and the average is 11.5.
Encana 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 Encana MACD line is below the signal line.
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. If the RSI of ECA stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.