Farmer & Merchant Technical Analysis (NASDAQ:FMAO)
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. When a chart pattern that can predict future Farmer & Merchant stock price movements is formed, the FMAO stock chart can become a key tool for a technical analyst.
See Farmer & Merchant 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 Farmer & Merchant stock analysis.
Farmer & Merchant Moving Average:
Moving averages help predict the price direction of FMAO 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 Farmer & Merchant are mostly signals of long term trends and will help long term traders.
Farmer & Merchant Bollinger Bands:
Bollinger bands comprise of a center line usually FMAO SMA, and two FMAO 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 $56.7 is in the lower range of Farmer & Merchant bollinger bands.
Farmer & Merchant 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 Farmer & Merchant MACD indicator is above 0 indicating a bullish trend.
Farmer & Merchant 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. 30.6 is the RSI value of FMAO stock. .