Taro Pharma Technical Analysis (NYSE:TARO)
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 Taro Pharma 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 TARO stock chart which creates a trading signal.
See Taro Pharma bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. The technical analysis form of Taro Pharma stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Taro Pharma Moving Average
Moving averages show the average price of TARO stock over a set time period and help traders see the overall trend by smoothening out the daily variation in price movement. A key factor that impacts moving averages is the lag factor. The 20 day moving average of $104.27 is above the price of $98.73.
Taro Pharma 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 TARO stock. The stock price is trading between the average and the lower band in the context of Taro Pharma bollinger bands.
Taro Pharma 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 Taro Pharma MACD line is above the signal line.
Taro Pharma 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. The relative strength index of TARO stock is 25.6.