Travelers Companies Technical Analysis (NYSE:TRV)
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 Travelers Companies 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 TRV 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 Travelers Companies. Technical analysis uses an approach for Travelers Companies stock analysis that does not care for the fair value of a company but uses price and volume data only.
Travelers Companies Moving Average
Moving averages help predict the price direction of TRV 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 Travelers Companies are mostly signals of long term trends and will help long term traders.
Travelers Companies Bollinger Bands
Bollinger bands comprise of a center line usually TRV SMA, and two TRV stock price bands above and below it. The stock is considered overbought when the price starts moving closer towards the upper band, and is considered oversold as stock price moves closer towards the lower band. Currently the stock price of $132.5 is in the upper range of Travelers Companies bollinger bands.
Travelers Companies 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 Travelers Companies MACD line is above the signal line.
Travelers Companies 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 TRV stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.