Dr. Reddy's Laboratories Technical Analysis (NYSE:RDY)
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 Dr. Reddy's Laboratories 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 RDY stock chart which creates a trading signal.
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 Dr. Reddy's Laboratories. 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 Dr. Reddy's Laboratories stock analysis.
Dr. Reddy's Laboratories Moving Average
Moving averages help predict the price direction of RDY stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. The 20 day moving average of $31.88 is below the last closing price of $33.83 and the 50 day moving average of $32.3 is below the last closing price of $33.83. The 10 and 20 day periods can predict short term moving average trends.
Dr. Reddy's Laboratories Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Dr. Reddy's Laboratories. 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 upper band in the context of Dr. Reddy's Laboratories bollinger bands.
Dr. Reddy's Laboratories 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 Dr. Reddy's Laboratories MACD indicator is below 0 indicating a bearish trend.
Dr. Reddy's Laboratories Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. 76.62 is the RSI value of RDY stock.