Infinera Technical Analysis (NASDAQ:INFN)
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 Infinera 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 INFN stock chart which creates a trading signal.
See Infinera bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. Technical analysis uses an approach for Infinera stock analysis that does not care for the fair value of a company but uses price and volume data only.
Infinera Moving Average
Moving averages show the INFN stock price trend. The two most popular types of moving averages are the Simple Moving Average or SMA and the Exponential Moving Average or EMA. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for Infinera are mostly signals of long term trends and will help long term traders.
Infinera Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Infinera. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Currently the stock price of $5.92 is in the lower range of Infinera bollinger bands.
Infinera 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 Infinera MACD indicator is above 0 indicating a bullish trend.
Infinera 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. The relative strength index of INFN stock is 32.05.