TRW Automotive Technical Analysis (NYSE:TRW)
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 TRW stock chart pattern can give those who understand technical analysis an indication of which way TRW stock is headed, but cannot predict with 100% certainty as to what can happen to the TRW Automotive stock price.
See TRW Automotive bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. Technical analysis uses an approach for TRW Automotive stock analysis that does not care for the fair value of a company but uses price and volume data only.
TRW Automotive Moving Average
Moving averages show the average price of TRW 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 TRW Automotive are mostly signals of long term trends and will help long term traders.
TRW Automotive Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like TRW Automotive. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. TRW Automotive bollinger bands show that the stock price is $105.46, upper band is 105.57, lower band is 104.86, and the average is 105.21.
TRW Automotive 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 TRW Automotive MACD indicator can be used to identify bullish and bearish trends for the stock.
TRW Automotive Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of TRW stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.