McGrath RentCorp Technical Analysis (NASDAQ:MGRC)
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 McGrath RentCorp 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 MGRC stock chart which creates a trading signal.
See McGrath RentCorp bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. 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 McGrath RentCorp stock analysis.
McGrath RentCorp Moving Average
Moving averages show the average price of MGRC stock over a set time period and help traders see the overall trend by smoothening out the daily variation in price movement. A key factor that impacts moving averages is the lag factor. The 20 day moving average of $65.31 is above the price of $64.22.
McGrath RentCorp Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like McGrath RentCorp. 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 lower band in the context of McGrath RentCorp bollinger bands.
McGrath RentCorp Moving Average Convergence Divergence or MACD
The moving average convergence divergence or MACD is a technical indicator which helps assess the stock price trend. Traders usually wait for a confirmed crossover signal before entering into a trading position. Divergence implies that the current stock price trend could come to an end, when the stock price diverges from MACD. The McGrath RentCorp MACD line is below the signal line.
McGrath RentCorp Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. The relative strength index of MGRC stock is 20.16.