National General Technical Analysis (NASDAQ:NGHC)
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. The National General stock price data and volume are plotted in NGHC stock charts and these trading charts form the basis of technical analysis.
See National General bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. Technical analysis uses an approach for National General stock analysis that does not care for the fair value of a company but uses price and volume data only.
National General Moving Average
Moving averages help predict the price direction of NGHC stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for National General are mostly signals of long term trends and will help long term traders.
National General Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like National General. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. National General bollinger bands show that the stock price is $24.95, upper band is 26.29, lower band is 18.11, and the average is 22.2.
National General 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 National General MACD indicator can be used to identify bullish and bearish trends for the stock.
National General Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of NGHC stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.