Emulex Technical Analysis (NYSE:ELX)
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. The ELX stock chart pattern can give those who understand technical analysis an indication of which way ELX stock is headed, but cannot predict with 100% certainty as to what can happen to the Emulex stock price.
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 Emulex. 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 Emulex stock analysis.
Emulex Moving Average
Moving averages help predict the price direction of ELX stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for Emulex are mostly signals of long term trends and will help long term traders.
Emulex Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Emulex. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Currently the stock price of $7.99 is in the lower range of Emulex bollinger bands.
Emulex 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 Emulex MACD indicator is below 0 indicating a bearish trend.
Emulex 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 ELX stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.