Rush Enterprises Technical Analysis (NASDAQ:RUSHA)
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 Rush Enterprises 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 RUSHA stock chart which creates a trading signal.
See Rush Enterprises bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. 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 Rush Enterprises stock analysis.
Rush Enterprises Moving Average
Moving averages help predict the price direction of RUSHA 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 Rush Enterprises are mostly signals of long term trends and will help long term traders.
Rush Enterprises Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Rush Enterprises. 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 lower band in the context of Rush Enterprises bollinger bands.
Rush Enterprises 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 Rush Enterprises MACD indicator is above 0 indicating a bullish trend.
Rush Enterprises Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of RUSHA stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.