HDFC Bank Technical Analysis (NYSE:HDB)
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. The HDB stock chart pattern can give those who understand technical analysis an indication of which way HDB stock is headed, but cannot predict with 100% certainty as to what can happen to the HDFC Bank stock price.
See HDFC Bank bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. The technical analysis form of HDFC Bank stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
HDFC Bank Moving Average
Moving averages help predict the price direction of HDB 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 HDFC Bank are mostly signals of long term trends and will help long term traders.
HDFC Bank Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like HDFC Bank. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Currently the stock price of $111.45 is in the upper range of HDFC Bank bollinger bands.
HDFC Bank 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 HDFC Bank MACD line is above the signal line.
HDFC Bank Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of HDB stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.