First Merchants Technical Analysis (NASDAQ:FRME)
Technical analysis is the study of technical chart patterns and does not rely on the financials of a company. Just by looking at the First Merchants 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 FRME stock chart which creates a trading signal.
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 First Merchants. Technical analysis uses an approach for First Merchants stock analysis that does not care for the fair "value" of a company but uses price and volume data only.
First Merchants Moving Average:
FRME stock price movements can be forecasted by using triggers based on moving averages, which are also some of the simplest technical indicators. The way the averages are calculated in each of the 2 popular cases, that is SMA and EMA varies, however the interpretation of First Merchants chart patterns after the calculations remain the same. The 100 day moving average of 40.11 is above the last closing price of 39.64. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for First Merchants are mostly signals of long term trends and will help long term traders.
First Merchants Bollinger Bands:
Bollinger bands consist of two price bands above and below a center line for any company stock like First Merchants. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Currently the stock price of $39.64 is in the lower range of First Merchants bollinger bands.
First Merchants 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 Merchants MACD indicator can be used to identify bullish and bearish trends for the stock.
First Merchants 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 . 33.75 is the RSI value of FRME stock. .