Penns Woods Bancorp Technical Analysis (NASDAQ:PWOD)
Technical chart patterns are studied in depth by people who strongly believe in technical analysis. These type of investors who look at trading charts or technical stock charts are usually traders rather than value investors. Just by looking at the Penns Woods Bancorp 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 PWOD stock chart which creates a trading signal.
See Penns Woods Bancorp bollinger bands, SMA (200 day moving average, 50 day moving average) and exponential moving averages. Technical analysis uses an approach for Penns Woods Bancorp stock analysis that does not care for the fair "value" of a company but uses price and volume data only.
Penns Woods Bancorp Moving Average:
Moving averages show the average price of PWOD stock over a set time period and help traders see the overall trend by smoothening out the daily variation in price movement. A rise in trend over the long term indicates a long term uptrend. Similarly a falling PWOD moving average implies that Penns Woods Bancorp stock price is falling.
Penns Woods Bancorp Bollinger Bands:
Bollinger bands consist of two price bands above and below a center line for any company stock like Penns Woods Bancorp. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Currently the stock price of $42.2 is in the lower range of Penns Woods Bancorp bollinger bands.
Penns Woods Bancorp 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 Penns Woods Bancorp MACD indicator is below 0 indicating a bearish trend.
Penns Woods Bancorp 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 PWOD stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position. .