Mercantile Bank Technical Analysis (NASDAQ:MBWM)
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. The MBWM stock chart pattern can give those who understand technical analysis an indication of which way MBWM stock is headed, but cannot predict with 100% certainty as to what can happen to the Mercantile Bank stock price.
View technical indicators like moving averages - SMA and EMA, and bollinger bands for Mercantile Bank. Technical analysis essentially tries to study the supply and demand for a particular security and determine the stock trends for that security. Chartists use stock price movements for this form of Mercantile Bank stock analysis.
Mercantile Bank Moving Average
Moving averages show the average price of MBWM stock over a set time period and help traders see the overall trend by smoothening out the daily variation in price movement. The 20 day moving average of $34.2 is below the last closing price of $35.39 and the 50 day moving average of $34.51 is below the last closing price of $35.39. The 10 and 20 day periods can predict short term moving average trends.
Mercantile Bank Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Mercantile Bank. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. The stock price is trading between the average and the upper band in the context of Mercantile Bank bollinger bands.
Mercantile Bank 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 Mercantile Bank MACD indicator can be used to identify bullish and bearish trends for the stock.
Mercantile Bank 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 MBWM stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.