Employers Holdings Technical Analysis (NYSE:EIG)
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. When a chart pattern that can predict future Employers Holdings stock price movements is formed, the EIG stock chart can become a key tool for a technical analyst.
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 Employers Holdings. 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 Employers Holdings stock analysis.
Employers Holdings Moving Average:
EIG stock price movements can be forecasted by using triggers based on moving averages, which are also some of the simplest technical indicators. The way the averages are calculated in each of the 2 popular cases, that is SMA and EMA varies, however the interpretation of Employers Holdings chart patterns after the calculations remain the same. The 100 day moving average of 41.16 is below the last closing price of 41.7. One needs to choose the duration of a moving average depending on the investment objective and investment horizon. For periods greater than 100, it takes a larger and longer EIG stock price movement for the moving average to change course.
Employers Holdings 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 EIG stock. Employers Holdings bollinger bands show that the stock price is $41.7, upper band is 23.37, lower band is 18.88, and the average is 21.13.
Employers Holdings 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 Employers Holdings MACD line is below the signal line.
Employers Holdings 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 EIG stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position. .