iRobot Technical Analysis (NASDAQ:IRBT)
Technical chart patterns are studied in depth by people who strongly believe in technical analysis. These type of investors who look at trading charts or technical stock charts are usually traders rather than value investors. 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. The technical analysis form of iRobot stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
iRobot Moving Average:
IRBT stock price movements can be forecasted by using triggers based on moving averages, which are also some of the simplest technical indicators. The way the averages are calculated in each of the 2 popular cases, that is SMA and EMA varies, however the interpretation of iRobot chart patterns after the calculations remain the same. The 100 day moving average of 93.42 is above the last closing price of 76.14. One needs to choose the duration of a moving average depending on the investment objective and investment horizon. For periods greater than 100, it takes a larger and longer IRBT stock price movement for the moving average to change course.
iRobot Bollinger Bands:
Bollinger Bands were developed by the famous technical trader John Bollinger and are a measure of the volatility of a stock like the IRBT stock. The stock price is trading between the average and the lower band in the context 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 line is above the signal line.
iRobot Relative Strength Index:
This technical indicator compares the relative strength or weakness of a stock. It measures the magnitude of rise or fall in stock price movements . If the RSI of IRBT stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position. .