WW Grainger Technical Analysis (NYSE:GWW)
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 WW Grainger 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 GWW stock chart which creates a trading signal.
See WW Grainger 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 WW Grainger stock analysis.
WW Grainger Moving Average:
Moving averages help predict the price direction of GWW 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 WW Grainger are mostly signals of long term trends and will help long term traders.
WW Grainger 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 GWW stock. Currently the stock price of $175.59 is in the lower range of WW Grainger bollinger bands.
WW Grainger 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 WW Grainger MACD line is above the signal line.
WW Grainger 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 GWW stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position. .