The Hanover Insurance Technical Analysis (NYSE:THG)
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. The The Hanover Insurance stock price data and volume are plotted in THG stock charts and these trading charts form the basis of technical analysis.
View technical indicators like moving averages - SMA and EMA, and bollinger bands for The Hanover Insurance. Technical analysis uses an approach for The Hanover Insurance stock analysis that does not care for the fair value of a company but uses price and volume data only.
The Hanover Insurance Moving Average
Moving averages help predict the price direction of THG 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 $123.42 is above the price of $115.28.
The Hanover Insurance Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like The Hanover Insurance. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Currently the stock price of $115.28 is in the lower range of The Hanover Insurance bollinger bands.
The Hanover Insurance 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 The Hanover Insurance MACD indicator can be used to identify bullish and bearish trends for the stock.
The Hanover Insurance Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of THG stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.