Kansas City Southern Technical Analysis (NYSE:KSU)
Technical analysis is based on the study of past price and volume movements of a security with the help of technical stock charts or trading charts. Just by looking at the Kansas City Southern 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 KSU stock chart which creates a trading signal.
See Kansas City Southern bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. The technical analysis form of Kansas City Southern stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Kansas City Southern Moving Average
Moving averages help predict the price direction of KSU 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 $109.03 is below the last closing price of $110.1 and the 50 day moving average of $109.02 is below the last closing price of $110.1. The 10 and 20 day periods can predict short term moving average trends.
Kansas City Southern Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Kansas City Southern. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. The stock price is trading between the average and the upper band in the context of Kansas City Southern bollinger bands.
Kansas City Southern 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 Kansas City Southern MACD line is above the signal line.
Kansas City Southern 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 KSU stock is 44.66.