ITC Holdings Technical Analysis (NYSE:ITC)
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. The ITC Holdings stock price data and volume are plotted in ITC stock charts and these trading charts form the basis of technical analysis.
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 ITC Holdings. 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 ITC Holdings stock analysis.
ITC Holdings Moving Average
Moving averages help predict the price direction of ITC stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for ITC Holdings are mostly signals of long term trends and will help long term traders.
ITC Holdings Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like ITC Holdings. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Currently the stock price of $45.5 is in the lower range of ITC Holdings bollinger bands.
ITC Holdings 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 ITC Holdings MACD indicator can be used to identify bullish and bearish trends for the stock.
ITC Holdings Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of ITC stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.