Newport Technical Analysis (NASDAQ:NEWP)
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 Newport 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 NEWP stock chart which creates a trading signal.
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 Newport. 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 Newport stock analysis.
Newport Moving Average
Moving averages help predict the price direction of NEWP stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. The 20 day moving average of $22.98 is below the last closing price of $22.99 and the 50 day moving average of $22.62 is below the last closing price of $22.99. The 10 and 20 day periods can predict short term moving average trends.
Newport Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Newport. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Newport bollinger bands show that the stock price is $22.99, upper band is 23.04, lower band is 22.93, and the average is 22.98.
Newport 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 Newport MACD line is below the signal line.
Newport 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 NEWP stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.