Merchants Bancshares Technical Analysis (NASDAQ:MBVT)
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 Merchants Bancshares 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 MBVT stock chart which creates a trading signal.
See Merchants Bancshares bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. Technical analysis uses an approach for Merchants Bancshares stock analysis that does not care for the fair value of a company but uses price and volume data only.
Merchants Bancshares Moving Average
Moving averages show the MBVT stock price trend. The two most popular types of moving averages are the Simple Moving Average or SMA and the Exponential Moving Average or EMA. The 20 day moving average of $49.81 is above the last closing price of $49.8 and the 50 day moving average of $49.16 is below the last closing price of $49.8. The 10 and 20 day periods can predict short term moving average trends.
Merchants Bancshares Bollinger Bands
Bollinger bands comprise of a center line usually MBVT SMA, and two MBVT 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 $49.8 is in the lower range of Merchants Bancshares bollinger bands.
Merchants Bancshares 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 Merchants Bancshares MACD indicator can be used to identify bullish and bearish trends for the stock.
Merchants Bancshares 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 MBVT stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.