Companhia de Saneamento Basico Technical Analysis (NYSE:SBS)
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 Companhia de Saneamento Basico 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 SBS stock chart which creates a trading signal.
See Companhia de Saneamento Basico bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. The technical analysis form of Companhia de Saneamento Basico stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Companhia de Saneamento Basico Moving Average
Moving averages show the average price of SBS stock over a set time period and help traders see the overall trend by smoothening out the daily variation in price movement. A key factor that impacts moving averages is the lag factor. The 20 day moving average of $6.77 is above the price of $6.41.
Companhia de Saneamento Basico Bollinger Bands
Bollinger Bands were developed by the famous technical trader John Bollinger and are a measure of the volatility of a stock like the SBS stock. Currently the stock price of $6.41 is in the lower range of Companhia de Saneamento Basico bollinger bands.
Companhia de Saneamento Basico 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 Companhia de Saneamento Basico MACD indicator is below 0 indicating a bearish trend.
Companhia de Saneamento Basico Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of SBS stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.