Equity Lifestyle Technical Analysis (NYSE:ELS)
Technical chart patterns are studied in depth by people who strongly believe in technical analysis. These type of investors who look at trading charts or technical stock charts are usually traders rather than value investors. Just by looking at the Equity Lifestyle 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 ELS stock chart which creates a trading signal.
See Equity Lifestyle 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 Equity Lifestyle stock analysis.
Equity Lifestyle Moving Average:
ELS 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 Equity Lifestyle chart patterns after the calculations remain the same. The 100 day moving average of 84.09 is below the last closing price of 87.36. 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 ELS stock price movement for the moving average to change course.
Equity Lifestyle Bollinger Bands:
Bollinger bands comprise of a center line usually ELS SMA, and two ELS stock price bands above and below it. The stock is considered over brought 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 $87.36 is in the lower range of Equity Lifestyle bollinger bands.
Equity Lifestyle Moving Average Convergence Divergence or MACD:
The moving average convergence divergence or MACD is a technical indicator which helps gauge the stock price trend, as the indicator is useful in understanding the strength, direction and momentum of the stock price. The Equity Lifestyle MACD indicator is below 0 indicating a bearish trend.
Equity Lifestyle Relative Strength Index:
The RSI is a valuable tool to determine overbought / oversold stocks and measures the recent performance of a stock in relation to its own stock price history. The relative strength index of ELS stock is 50.6. .