Silicom Technical Analysis (NASDAQ:SILC)
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 Silicom 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 SILC stock chart which creates a trading signal.
You can view Simple Moving Average - SMA 20 day, 50 day & 100 day, Exponential Moving Average - EMA 20 day, 50 day & 100 day charts, and Bollinger Bands for Silicom. 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 Silicom stock analysis.
Silicom Moving Average
Moving averages show the average price of SILC stock over a set time period and help traders see the overall trend by smoothening out the daily variation in price movement. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for Silicom are mostly signals of long term trends and will help long term traders.
Silicom Bollinger Bands
Bollinger bands comprise of a center line usually SILC SMA, and two SILC 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. Currently the stock price of $38.16 is in the lower range of Silicom bollinger bands.
Silicom 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 Silicom MACD line is below the signal line.
Silicom Relative Strength Index
The relative strength index compares the magnitude of recent gains to recent losses and is a momentum indicator. It attempts to assess overbought and oversold conditions of a stock. 20.7 is the RSI value of SILC stock.