Consolidated Edison Technical Analysis (NYSE:ED)
Technical analysis is the study of stock price and volume data through technical charts. This analysis does not take into account the intrinsic value of a stock. The ED stock chart pattern can give those who understand technical analysis an indication of which way ED stock is headed, but cannot predict with 100% certainty as to what can happen to the Consolidated Edison stock price.
See Consolidated Edison 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 Consolidated Edison stock analysis.
Consolidated Edison Moving Average
Moving averages help predict the price direction of ED stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. The 20 day moving average of $78.4 is below the last closing price of $78.52 and the 50 day moving average of $77.06 is below the last closing price of $78.52. The 10 and 20 day periods can predict short term moving average trends.
Consolidated Edison Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Consolidated Edison. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Currently the stock price of $78.52 is in the upper range of Consolidated Edison bollinger bands.
Consolidated Edison Moving Average Convergence Divergence or MACD
Two important concepts with respect to moving average convergence divergence or MACD are: crossovers and divergence. When the MACD rises above the signal line, it typically indicates a bullish trend and most likely the stock prices will go up. The Consolidated Edison MACD indicator can be used to identify bullish and bearish trends for the stock.
Consolidated Edison Relative Strength Index
This technical indicator compares the relative strength or weakness of a stock. It measures the magnitude of rise or fall in stock price movements . If the RSI of ED stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.