Standard Motor Products Technical Analysis (NYSE:SMP)
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 Standard Motor Products 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 SMP 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 Standard Motor Products. Technical analysis uses an approach for Standard Motor Products stock analysis that does not care for the fair value of a company but uses price and volume data only.
Standard Motor Products Moving Average
Moving averages help predict the price direction of SMP stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. A key factor that impacts moving averages is the lag factor. The 20 day moving average of $46.24 is below the price of $49.13.
Standard Motor Products Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Standard Motor Products. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Currently the stock price of $49.13 is in the upper range of Standard Motor Products bollinger bands.
Standard Motor Products 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 Standard Motor Products MACD line is above the signal line.
Standard Motor Products 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 SMP stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.