Edison International Technical Analysis (NYSE:EIX)
Technical analysis relies on the belief that future price movements of a stock can be forecasted through the study of historical market data and technical charts. Just by looking at the Edison International 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 EIX stock chart which creates a trading signal.
See Edison International 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 Edison International stock analysis.
Edison International Moving Average
Moving averages show the average price of EIX stock over a set time period and help traders see the overall trend by smoothening out the daily variation in price movement. The 20 day moving average of $67.08 is below the last closing price of $69.88 and the 50 day moving average of $64.64 is below the last closing price of $69.88. The 10 and 20 day periods can predict short term moving average trends.
Edison International Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Edison International. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Edison International bollinger bands show that the stock price is $69.88, upper band is 69.33, lower band is 64.84, and the average is 67.08.
Edison International 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 Edison International MACD line is below the signal line.
Edison International 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 EIX stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.