Pinnacle Foods Technical Analysis (NYSE:PF)
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 Pinnacle Foods 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 PF stock chart which creates a trading signal.
View technical indicators like moving averages - SMA and EMA, and bollinger bands for Pinnacle Foods. 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 Pinnacle Foods stock analysis.
Pinnacle Foods Moving Average
Moving averages show the PF stock price trend. The two most popular types of moving averages are the Simple Moving Average or SMA and the Exponential Moving Average or EMA. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for Pinnacle Foods are mostly signals of long term trends and will help long term traders.
Pinnacle Foods Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Pinnacle Foods. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. The stock price is trading between the average and the lower band in the context of Pinnacle Foods bollinger bands.
Pinnacle Foods 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 Pinnacle Foods MACD indicator can be used to identify bullish and bearish trends for the stock.
Pinnacle Foods 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 PF stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.