TransAlta Technical Analysis (NYSE:TAC)
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. The TAC stock chart pattern can give those who understand technical analysis an indication of which way TAC stock is headed, but cannot predict with 100% certainty as to what can happen to the TransAlta stock price.
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 TransAlta. 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 TransAlta stock analysis.
TransAlta Moving Average
Moving averages show the average price of TAC 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 TransAlta are mostly signals of long term trends and will help long term traders.
TransAlta 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 TAC stock. The stock price is trading between the average and the upper band in the context of TransAlta bollinger bands.
TransAlta 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 TransAlta MACD indicator is above 0 indicating a bullish trend.
TransAlta Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of TAC stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.