Royal Bank of Scotland Plc Technical Analysis (NYSE:RBS)
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 Royal Bank of Scotland Plc 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 RBS stock chart which creates a trading signal.
View technical indicators like moving averages (SMA and EMA), and bollinger bands for Royal Bank of Scotland Plc. Technical analysis uses an approach for Royal Bank of Scotland Plc stock analysis that does not care for the fair "value" of a company but uses price and volume data only.
Royal Bank of Scotland Plc Moving Average:
Moving averages help predict the price direction of RBS stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for Royal Bank of Scotland Plc are mostly signals of long term trends and will help long term traders.
Royal Bank of Scotland Plc Bollinger Bands:
Bollinger Bands developed from the concept of trading bands and can be used to measure the high-low range of Royal Bank of Scotland Plc stock price relative to previous trades. Currently the stock price of $6.16 is in the upper range of Royal Bank of Scotland Plc bollinger bands.
Royal Bank of Scotland Plc Moving Average Convergence Divergence or MACD:
Two important concepts with respect to moving average convergence divergence or MACD are: crossovers and divergence. When the MACD rises above the signal line, it typically indicates a bullish trend and most likely the stock prices will go up. The Royal Bank of Scotland Plc MACD indicator is below 0 indicating a bearish trend.
Royal Bank of Scotland Plc 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 . The relative strength index of RBS stock is 54.37. .