Semiconductor Manufacturing Technical Analysis (NYSE:SMI)
Technical analysis is the study of stock price and volume data through technical charts. This analysis does not take into account the intrinsic value of a stock. The SMI stock chart pattern can give those who understand technical analysis an indication of which way SMI stock is headed, but cannot predict with 100% certainty as to what can happen to the Semiconductor Manufacturing stock price.
See Semiconductor Manufacturing bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. The technical analysis form of Semiconductor Manufacturing stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Semiconductor Manufacturing Moving Average
Moving averages help predict the price direction of SMI 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 Semiconductor Manufacturing are mostly signals of long term trends and will help long term traders.
Semiconductor Manufacturing Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Semiconductor Manufacturing. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. The stock price is trading between the average and the upper band in the context of Semiconductor Manufacturing bollinger bands.
Semiconductor Manufacturing 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 Semiconductor Manufacturing MACD line is below the signal line.
Semiconductor Manufacturing 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. If the RSI of SMI stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.