Providence and Worcester Railroad Technical Analysis (NASDAQ:PWX)
Technical analysis is based on the study of past price and volume movements of a security with the help of technical stock charts or trading charts. Just by looking at the Providence and Worcester Railroad 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 PWX stock chart which creates a trading signal.
See Providence and Worcester Railroad bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. The technical analysis form of Providence and Worcester Railroad stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Providence and Worcester Railroad Moving Average
Moving averages help predict the price direction of PWX stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. A key factor that impacts moving averages is the lag factor. The 20 day moving average of $24.86 is below the price of $25.03.
Providence and Worcester Railroad Bollinger Bands
Bollinger Bands were developed by the famous technical trader John Bollinger and are a measure of the volatility of a stock like the PWX stock. Currently the stock price of $25.03 is in the upper range of Providence and Worcester Railroad bollinger bands.
Providence and Worcester Railroad 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 Providence and Worcester Railroad MACD line is below the signal line.
Providence and Worcester Railroad Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of PWX stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.