Heritage Commerce Technical Analysis (NASDAQ:HTBK)
Technical analysis relies on the belief that future price movements of a stock can be forecasted through the study of historical market data and technical charts. Just by looking at the Heritage Commerce 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 HTBK stock chart which creates a trading signal.
See Heritage Commerce bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. Technical analysis uses an approach for Heritage Commerce stock analysis that does not care for the fair value of a company but uses price and volume data only.
Heritage Commerce Moving Average
Moving averages show the average price of HTBK stock over a set time period and help traders see the overall trend by smoothening out the daily variation in price movement. A key factor that impacts moving averages is the lag factor. The 20 day moving average of $15.86 is below the price of $16.27.
Heritage Commerce Bollinger Bands
Bollinger bands comprise of a center line usually HTBK SMA, and two HTBK 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. Currently the stock price of $16.27 is in the upper range of Heritage Commerce bollinger bands.
Heritage Commerce 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 Heritage Commerce MACD line is below the signal line.
Heritage Commerce Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of HTBK stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.