NexPoint Residential Trust Technical Analysis (NYSE:NXRT)
Technical analysis is the study of technical chart patterns and does not rely on the financials of a company. Just by looking at the NexPoint Residential Trust 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 NXRT stock chart which creates a trading signal.
See NexPoint Residential Trust 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 NexPoint Residential Trust stock analysis.
NexPoint Residential Trust Moving Average:
Moving averages help predict the price direction of NXRT stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. Moving averages can be used for NXRT trend identification. A rising moving average shows that stock prices are generally increasing.
NexPoint Residential Trust Bollinger Bands:
Bollinger bands consist of two price bands above and below a center line for any company stock like NexPoint Residential Trust. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. NexPoint Residential Trust bollinger bands show that the stock price is $23.29, upper band is 14.51, lower band is 13.64, and the average is 14.07.
NexPoint Residential Trust 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 NexPoint Residential Trust MACD indicator can be used to identify bullish and bearish trends for the stock.
NexPoint Residential Trust 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 NXRT stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position. .