Lithia Motors Technical Analysis (NYSE:LAD)
Technical analysis is the study of stock price and volume data through technical charts. This analysis does not take into account the intrinsic value of a stock. The LAD stock chart pattern can give those who understand technical analysis an indication of which way LAD stock is headed, but cannot predict with 100% certainty as to what can happen to the Lithia Motors stock price.
See Lithia Motors bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. Technical analysis uses an approach for Lithia Motors stock analysis that does not care for the fair value of a company but uses price and volume data only.
Lithia Motors Moving Average
Moving averages show the average price of LAD stock over a set time period and help traders see the overall trend by smoothening out the daily variation in price movement. A key factor that impacts moving averages is the lag factor. The 20 day moving average of $87.03 is above the price of $86.33.
Lithia Motors Bollinger Bands
Bollinger bands comprise of a center line usually LAD SMA, and two LAD 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 $86.33 is in the lower range of Lithia Motors bollinger bands.
Lithia Motors Moving Average Convergence Divergence or MACD
The moving average convergence divergence or MACD is a technical indicator which helps assess the stock price trend. Traders usually wait for a confirmed crossover signal before entering into a trading position. Divergence implies that the current stock price trend could come to an end, when the stock price diverges from MACD. The Lithia Motors MACD indicator is above 0 indicating a bullish trend.
Lithia Motors 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. If the RSI of LAD stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.