Rockwell Automation Technical Analysis (NYSE:ROK)
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 Rockwell Automation 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 ROK stock chart which creates a trading signal.
See Rockwell Automation bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. Technical analysis uses an approach for Rockwell Automation stock analysis that does not care for the fair value of a company but uses price and volume data only.
Rockwell Automation Moving Average
Moving averages help predict the price direction of ROK 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 $192.83 is above the last closing price of $185.56 and the 50 day moving average of $195.56 is above the last closing price of $185.56. The 10 and 20 day periods can predict short term moving average trends.
Rockwell Automation Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Rockwell Automation. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Currently the stock price of $185.56 is in the lower range of Rockwell Automation bollinger bands.
Rockwell Automation 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 Rockwell Automation MACD line is below the signal line.
Rockwell Automation Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of ROK stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.