Silicon Motion Technology Technical Analysis (NASDAQ:SIMO)
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. The Silicon Motion Technology stock price data and volume are plotted in SIMO stock charts and these trading charts form the basis of technical analysis.
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 Silicon Motion Technology. The technical analysis form of Silicon Motion Technology stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Silicon Motion Technology Moving Average
Moving averages help predict the price direction of SIMO stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. The 20 day moving average of $49.35 is below the last closing price of $51 and the 50 day moving average of $48.33 is below the last closing price of $51. The 10 and 20 day periods can predict short term moving average trends.
Silicon Motion Technology Bollinger Bands
Bollinger bands comprise of a center line usually SIMO SMA, and two SIMO 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 $51 is in the upper range of Silicon Motion Technology bollinger bands.
Silicon Motion Technology 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 Silicon Motion Technology MACD line is above the signal line.
Silicon Motion Technology Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of SIMO stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.