First Merchants Technical Analysis (NASDAQ:FRME)
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 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.
See First Merchants bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. 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
Moving averages help predict the price direction of FRME 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 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 $42.61 is in the upper range of First Merchants bollinger bands.
First Merchants 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 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 . The relative strength index of FRME stock is 56.36.