Resolute Energy Technical Analysis (NYSE:REN)
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 Resolute Energy 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 REN 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 Resolute Energy. 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 Resolute Energy stock analysis.
Resolute Energy Moving Average
Moving averages help predict the price direction of REN 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 Resolute Energy are mostly signals of long term trends and will help long term traders.
Resolute Energy Bollinger Bands
Bollinger bands comprise of a center line usually REN SMA, and two REN stock price bands above and below it. The stock is considered overbought when the price starts moving closer towards the upper band, and is considered oversold as stock price moves closer towards the lower band. The stock price is trading between the average and the lower band in the context of Resolute Energy bollinger bands.
Resolute Energy 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 Resolute Energy MACD line is below the signal line.
Resolute Energy 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 . 40.67 is the RSI value of REN stock.