Luna Innovations Technical Analysis (NASDAQ:LUNA)
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 Luna Innovations 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 LUNA stock chart which creates a trading signal.
See Luna Innovations bollinger bands, SMA (200 day moving average, 50 day moving average) and exponential moving averages. Technical analysis is used by finance professionals and is popular among traders, especially day traders. Undertaking Luna Innovations stock analysis using these technical indicators helps identify trading opportunities.
Luna Innovations Moving Average:
LUNA stock price movements can be forecasted by using triggers based on moving averages, which are also some of the simplest technical indicators. The way the averages are calculated in each of the 2 popular cases, that is SMA and EMA varies, however the interpretation of Luna Innovations chart patterns after the calculations remain the same. The 100 day moving average of 1.46 is below the last closing price of 1.59. One needs to choose the duration of a moving average depending on the investment objective and investment horizon. For periods greater than 100, it takes a larger and longer LUNA stock price movement for the moving average to change course.
Luna Innovations Bollinger Bands:
Bollinger bands comprise of a center line usually LUNA SMA, and two LUNA stock price bands above and below it. The stock is considered over brought when the price starts moving closer towards the upper band, and is considered oversold as stock price moves closer towards the lower band. Luna Innovations bollinger bands show that the stock price is $1.59, upper band is 5.33, lower band is 3.21, and the average is 4.27.
Luna Innovations 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 Luna Innovations MACD indicator is below 0 indicating a bearish trend.
Luna Innovations 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 . The relative strength index of LUNA stock is 65.91. .