Synchrony Technical Analysis (NYSE:SYF)
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 Synchrony 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 SYF stock chart which creates a trading signal.
See Synchrony bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. The technical analysis form of Synchrony stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Synchrony Moving Average
Moving averages help predict the price direction of SYF 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 Synchrony are mostly signals of long term trends and will help long term traders.
Synchrony Bollinger Bands
Bollinger Bands were developed by the famous technical trader John Bollinger and are a measure of the volatility of a stock like the SYF stock. Currently the stock price of $34.13 is in the lower range of Synchrony bollinger bands.
Synchrony 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 Synchrony MACD line is above the signal line.
Synchrony Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of SYF stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.