Mellanox Technologies Technical Analysis (NASDAQ:MLNX)
Technical analysis is the study of technical chart patterns and does not rely on the financials of a company. A MLNX stock chart pattern can give those who understand technical analysis an indication of which way MLNX stock is headed, but cannot predict with 100% certainty as to what can happen to the Mellanox Technologies stock price.
You can view Simple Moving Average (SMA 20 day, 50 day & 100 day), Exponential Moving Average (EMA 20 day, 50 day & 100 day) charts, and Bollinger Bands for Mellanox Technologies. Technical analysis uses an approach for Mellanox Technologies stock analysis that does not care for the fair "value" of a company but uses price and volume data only.
Mellanox Technologies Moving Average:
MLNX stock price movements can be forecasted by using triggers based on moving averages, which are also some of the simplest technical indicators. The way the averages are calculated in each of the 2 popular cases, that is SMA and EMA varies, however the interpretation of Mellanox Technologies chart patterns after the calculations remain the same. The 100 day moving average of 45.56 is below the last closing price of 46.15. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for Mellanox Technologies are mostly signals of long term trends and will help long term traders.
Mellanox Technologies Bollinger Bands:
Bollinger bands comprise of a center line usually MLNX SMA, and two MLNX stock price bands above and below it. The stock is considered over brought 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 $46.15 is in the lower range of Mellanox Technologies bollinger bands.
Mellanox Technologies 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 Mellanox Technologies MACD indicator is above 0 indicating a bullish trend.
Mellanox Technologies 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 . The relative strength index of MLNX stock is 47.73. .