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. Just by looking at the Employers Holdings 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 EIG stock chart which creates a trading signal.
See Employers Holdings 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 Employers Holdings stock analysis.
Employers Holdings Moving Average
Moving averages show the average price of EIG stock over a set time period and help traders see the overall trend by smoothening out the daily variation in price movement. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for Employers Holdings are mostly signals of long term trends and will help long term traders.
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. Currently the stock price of $40.9 is in the lower range of Employers Holdings bollinger bands.
Employers Holdings 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 Employers Holdings MACD indicator is below 0 indicating a bearish trend.
Employers Holdings Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. The relative strength index of EIG stock is 39.23.