Eaton Technical Analysis (NYSE:ETN)
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 Eaton 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 ETN stock chart which creates a trading signal.
See Eaton 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 Eaton stock analysis.
Eaton Moving Average
Moving averages show the ETN stock price trend. The two most popular types of moving averages are the Simple Moving Average or SMA and the Exponential Moving Average or EMA. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for Eaton are mostly signals of long term trends and will help long term traders.
Eaton 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 ETN stock. Eaton bollinger bands show that the stock price is $81.35, upper band is 83.36, lower band is 78.22, and the average is 80.79.
Eaton 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 Eaton MACD indicator can be used to identify bullish and bearish trends for the stock.
Eaton 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. 39.75 is the RSI value of ETN stock.