Omnicom Technical Analysis (NYSE:OMC)
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. A OMC stock chart pattern can give those who understand technical analysis an indication of which way OMC stock is headed, but cannot predict with 100% certainty as to what can happen to the Omnicom stock price.
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 Omnicom. Technical analysis is used by finance professionals and is popular among traders, especially day traders. Undertaking Omnicom stock analysis using these technical indicators helps identify trading opportunities.
Omnicom Moving Average:
OMC stock price movements can be forecasted by using triggers based on moving averages, which are also some of the simplest technical indicators. The way the averages are calculated in each of the 2 popular cases, that is SMA and EMA varies, however the interpretation of Omnicom chart patterns after the calculations remain the same. The 100 day moving average of 85.5 is above the last closing price of 83.25. A rise in trend over the long term indicates a long term uptrend. Similarly a falling OMC moving average implies that Omnicom stock price is falling.
Omnicom Bollinger Bands:
Bollinger bands consist of two price bands above and below a center line for any company stock like Omnicom. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Currently the stock price of $83.25 is in the lower range of Omnicom bollinger bands.
Omnicom 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 Omnicom MACD indicator is below 0 indicating a bearish trend.
Omnicom Relative Strength Index:
This technical indicator compares the relative strength or weakness of a stock. It measures the magnitude of rise or fall in stock price movements . If the RSI of OMC stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position. .