Lear Technical Analysis (NYSE:LEA)
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 Lear 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 LEA stock chart which creates a trading signal.
View technical indicators like moving averages - SMA and EMA, and bollinger bands for Lear. Technical analysis uses an approach for Lear stock analysis that does not care for the fair value of a company but uses price and volume data only.
Lear Moving Average
Moving averages help predict the price direction of LEA 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 $201.15 is below the last closing price of $201.35 and the 50 day moving average of $196.81 is below the last closing price of $201.35. The 10 and 20 day periods can predict short term moving average trends.
Lear Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Lear. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Currently the stock price of $201.35 is in the upper range of Lear bollinger bands.
Lear 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 Lear MACD indicator is above 0 indicating a bullish trend.
Lear Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of LEA stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.