First American Technical Analysis (NYSE:FAF)
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 FAF stock chart pattern can give those who understand technical analysis an indication of which way FAF stock is headed, but cannot predict with 100% certainty as to what can happen to the First American stock price.
See First American bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. Technical analysis uses an approach for First American stock analysis that does not care for the fair value of a company but uses price and volume data only.
First American Moving Average
Moving averages help predict the price direction of FAF stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. A key factor that impacts moving averages is the lag factor. The 20 day moving average of $57.96 is below the price of $59.46.
First American Bollinger Bands
Bollinger bands comprise of a center line usually FAF SMA, and two FAF stock price bands above and below it. The stock is considered overbought when the price starts moving closer towards the upper band, and is considered oversold as stock price moves closer towards the lower band. First American bollinger bands show that the stock price is $59.46, upper band is 59.91, lower band is 56.02, and the average is 57.96.
First American 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 First American MACD line is above the signal line.
First American Relative Strength Index
This technical indicator compares the relative strength or weakness of a stock. It measures the magnitude of rise or fall in stock price movements . If the RSI of FAF stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.