Motorcar Parts of America Technical Analysis (NASDAQ:MPAA)
Technical analysis is the study of stock price and volume data through technical charts. This analysis does not take into account the intrinsic value of a stock. Just by looking at the Motorcar Parts of America 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 MPAA stock chart which creates a trading signal.
See Motorcar Parts of America bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. The technical analysis form of Motorcar Parts of America stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Motorcar Parts of America Moving Average
Moving averages show the average price of MPAA 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 $24.72 is above the last closing price of $21.78 and the 50 day moving average of $25.76 is above the last closing price of $21.78. The 10 and 20 day periods can predict short term moving average trends.
Motorcar Parts of America 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 MPAA stock. The stock price is trading between the average and the lower band in the context of Motorcar Parts of America bollinger bands.
Motorcar Parts of America 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 Motorcar Parts of America MACD line is below the signal line.
Motorcar Parts of America 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 MPAA stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.