Gerdau Technical Analysis (NYSE:GGB)
Technical analysis is the study of stock price and volume data through technical charts. This analysis does not take into account the intrinsic value of a stock. Just by looking at the Gerdau 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 GGB stock chart which creates a trading signal.
See Gerdau bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. The technical analysis form of Gerdau stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Gerdau Moving Average
Moving averages show the average price of GGB stock over a set time period and help traders see the overall trend by smoothening out the daily variation in price movement. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for Gerdau are mostly signals of long term trends and will help long term traders.
Gerdau Bollinger Bands
Bollinger bands comprise of a center line usually GGB SMA, and two GGB stock price bands above and below it. The stock is considered overbought when the price starts moving closer towards the upper band, and is considered oversold as stock price moves closer towards the lower band. Gerdau bollinger bands show that the stock price is $3.96, upper band is 4.71, lower band is 3.9, and the average is 4.3.
Gerdau 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 Gerdau MACD indicator can be used to identify bullish and bearish trends for the stock.
Gerdau 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 GGB stock is 33.53.