Reynolds American Technical Analysis (NYSE:RAI)
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. The RAI stock chart pattern can give those who understand technical analysis an indication of which way RAI stock is headed, but cannot predict with 100% certainty as to what can happen to the Reynolds American 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 Reynolds American. The technical analysis form of Reynolds American stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Reynolds American Moving Average
Moving averages show the average price of RAI stock over a set time period and help traders see the overall trend by smoothening out the daily variation in price movement. A key factor that impacts moving averages is the lag factor. The 20 day moving average of $65.16 is below the price of $65.4.
Reynolds American 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 RAI stock. Reynolds American bollinger bands show that the stock price is $65.4, upper band is 66.54, lower band is 63.78, and the average is 65.16.
Reynolds American 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 Reynolds American MACD indicator can be used to identify bullish and bearish trends for the stock.
Reynolds American 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 RAI stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.