ENCOMPASS HLTH Technical Analysis (NYSE:EHC)
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. Just by looking at the ENCOMPASS HLTH 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 EHC stock chart which creates a trading signal.
You can view Simple Moving Average - SMA 20 day, 50 day & 100 day, Exponential Moving Average - EMA 20 day, 50 day & 100 day charts, and Bollinger Bands for ENCOMPASS HLTH. 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 ENCOMPASS HLTH stock analysis.
ENCOMPASS HLTH Moving Average
Moving averages help predict the price direction of EHC 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 $49.92 is below the last closing price of $52.78 and the 50 day moving average of $48.9 is below the last closing price of $52.78. The 10 and 20 day periods can predict short term moving average trends.
ENCOMPASS HLTH Bollinger Bands
Bollinger bands comprise of a center line usually EHC SMA, and two EHC 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 $52.78 is in the upper range of ENCOMPASS HLTH bollinger bands.
ENCOMPASS HLTH 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 ENCOMPASS HLTH MACD line is below the signal line.
ENCOMPASS HLTH 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 EHC stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.