Lorillard Technical Analysis (NYSE:LO)
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 Lorillard 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 LO stock chart which creates a trading signal.
See Lorillard bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. The technical analysis form of Lorillard stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Lorillard Moving Average
Moving averages help predict the price direction of LO stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. A key factor that impacts moving averages is the lag factor. The 20 day moving average of $71.87 is above the price of $71.4.
Lorillard Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Lorillard. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Currently the stock price of $71.4 is in the lower range of Lorillard bollinger bands.
Lorillard 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 Lorillard MACD indicator is below 0 indicating a bearish trend.
Lorillard 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 LO stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.