iRobot Technical Analysis (NASDAQ:IRBT)
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 iRobot 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 IRBT stock chart which creates a trading signal.
See iRobot 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 iRobot stock analysis.
iRobot Moving Average
Moving averages help predict the price direction of IRBT stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. The 20 day moving average of $70.29 is below the last closing price of $78.37 and the 50 day moving average of $65.15 is below the last closing price of $78.37. The 10 and 20 day periods can predict short term moving average trends.
iRobot Bollinger Bands
Bollinger bands comprise of a center line usually IRBT SMA, and two IRBT 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 $78.37 is in the upper range of iRobot bollinger bands.
iRobot Moving Average Convergence Divergence or MACD
The moving average convergence divergence or MACD is a technical indicator which helps gauge the stock price trend, as the indicator is useful in understanding the strength, direction and momentum of the stock price. The iRobot MACD indicator is below 0 indicating a bearish trend.
iRobot Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. 83.53 is the RSI value of IRBT stock.