Medifast Technical Analysis (NYSE:MED)
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 Medifast 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 MED stock chart which creates a trading signal.
See Medifast bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. Technical analysis uses an approach for Medifast stock analysis that does not care for the fair value of a company but uses price and volume data only.
Medifast Moving Average
Moving averages help predict the price direction of MED stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for Medifast are mostly signals of long term trends and will help long term traders.
Medifast Bollinger Bands
Bollinger bands comprise of a center line usually MED SMA, and two MED 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. Medifast bollinger bands show that the stock price is $216.96, upper band is 258.65, lower band is 204.44, and the average is 231.54.
Medifast 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 Medifast MACD line is above the signal line.
Medifast 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 . 35.51 is the RSI value of MED stock.