Meritor Technical Analysis (NYSE:MTOR)
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. The MTOR stock chart pattern can give those who understand technical analysis an indication of which way MTOR stock is headed, but cannot predict with 100% certainty as to what can happen to the Meritor stock price.
See Meritor 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 Meritor stock analysis.
Meritor Moving Average
Moving averages show the average price of MTOR stock over a set time period and help traders see the overall trend by smoothening out the daily variation in price movement. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for Meritor are mostly signals of long term trends and will help long term traders.
Meritor Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Meritor. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Currently the stock price of $21.47 is in the upper range of Meritor bollinger bands.
Meritor 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 Meritor MACD indicator is below 0 indicating a bearish trend.
Meritor 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 MTOR stock is 55.59.