Fiat Chrysler Technical Analysis (NYSE:FCAU)
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 Fiat Chrysler 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 FCAU stock chart which creates a trading signal.
View technical indicators like moving averages - SMA and EMA, and bollinger bands for Fiat Chrysler. 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 Fiat Chrysler stock analysis.
Fiat Chrysler Moving Average
Moving averages show the FCAU 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 20 day moving average of $22.28 is below the last closing price of $23.61 and the 50 day moving average of $21.73 is below the last closing price of $23.61. The 10 and 20 day periods can predict short term moving average trends.
Fiat Chrysler Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Fiat Chrysler. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Currently the stock price of $23.61 is in the upper range of Fiat Chrysler bollinger bands.
Fiat Chrysler 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 Fiat Chrysler MACD line is above the signal line.
Fiat Chrysler 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 FCAU stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.