Global-Tech Advanced Technical Analysis (NASDAQ:GAI)
Technical analysis is based on the study of past price and volume movements of a security with the help of technical stock charts or trading charts. Just by looking at the Global-Tech Advanced 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 GAI stock chart which creates a trading signal.
See Global-Tech Advanced bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. The technical analysis form of Global-Tech Advanced stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Global-Tech Advanced Moving Average
Moving averages show the average price of GAI stock over a set time period and help traders see the overall trend by smoothening out the daily variation in price movement. The 20 day moving average of $8.64 is below the last closing price of $8.8 and the 50 day moving average of $8.44 is below the last closing price of $8.8. The 10 and 20 day periods can predict short term moving average trends.
Global-Tech Advanced Bollinger Bands
Bollinger Bands were developed by the famous technical trader John Bollinger and are a measure of the volatility of a stock like the GAI stock. Currently the stock price of $8.8 is in the upper range of Global-Tech Advanced bollinger bands.
Global-Tech Advanced 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 Global-Tech Advanced MACD indicator is below 0 indicating a bearish trend.
Global-Tech Advanced 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 GAI stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.