Shinhan Financial Technical Analysis (NYSE:SHG)
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 Shinhan Financial 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 SHG stock chart which creates a trading signal.
See Shinhan Financial bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. Technical analysis uses an approach for Shinhan Financial stock analysis that does not care for the fair value of a company but uses price and volume data only.
Shinhan Financial Moving Average
Moving averages show the average price of SHG 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 $47.13 is above the price of $45.12.
Shinhan Financial Bollinger Bands
Bollinger bands comprise of a center line usually SHG SMA, and two SHG 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 Shinhan Financial bollinger bands.
Shinhan Financial Moving Average Convergence Divergence or MACD
Two important concepts with respect to moving average convergence divergence or MACD are: crossovers and divergence. When the MACD rises above the signal line, it typically indicates a bullish trend and most likely the stock prices will go up. The Shinhan Financial MACD indicator can be used to identify bullish and bearish trends for the stock.
Shinhan Financial 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 SHG stock is 32.8.