Spectra Energy Partners Technical Analysis (NYSE:SEP)
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 Spectra Energy Partners 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 SEP stock chart which creates a trading signal.
See Spectra Energy Partners 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 Spectra Energy Partners stock analysis.
Spectra Energy Partners Moving Average
Moving averages help predict the price direction of SEP 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 Spectra Energy Partners are mostly signals of long term trends and will help long term traders.
Spectra Energy Partners Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Spectra Energy Partners. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Currently the stock price of $36.97 is in the lower range of Spectra Energy Partners bollinger bands.
Spectra Energy Partners 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 Spectra Energy Partners MACD indicator can be used to identify bullish and bearish trends for the stock.
Spectra Energy Partners Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. The relative strength index of SEP stock is 56.58.