McDermott Technical Analysis (NYSE:MDR)
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 McDermott 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 MDR stock chart which creates a trading signal.
See McDermott bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. The technical analysis form of McDermott stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
McDermott Moving Average
Moving averages show the MDR 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 longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for McDermott are mostly signals of long term trends and will help long term traders.
McDermott Bollinger Bands
Bollinger Bands were developed by the famous technical trader John Bollinger and are a measure of the volatility of a stock like the MDR stock. Currently the stock price of $6.79 is in the upper range of McDermott bollinger bands.
McDermott 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 McDermott MACD line is below the signal line.
McDermott 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 MDR stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.