Honda Technical Analysis (NYSE:HMC)
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 HMC stock chart pattern can give those who understand technical analysis an indication of which way HMC stock is headed, but cannot predict with 100% certainty as to what can happen to the Honda stock price.
You can view Simple Moving Average - SMA 20 day, 50 day & 100 day, Exponential Moving Average - EMA 20 day, 50 day & 100 day charts, and Bollinger Bands for Honda. Technical analysis uses an approach for Honda stock analysis that does not care for the fair value of a company but uses price and volume data only.
Honda Moving Average
Moving averages help predict the price direction of HMC stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. A key factor that impacts moving averages is the lag factor. The 20 day moving average of $29.4 is below the price of $29.69.
Honda Bollinger Bands
Bollinger bands comprise of a center line usually HMC SMA, and two HMC 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. Honda bollinger bands show that the stock price is $29.69, upper band is 30.97, lower band is 27.82, and the average is 29.4.
Honda 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 Honda MACD line is below the signal line.
Honda Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of HMC stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.