Tata Motors Technical Analysis (NYSE:TTM)
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 Tata Motors stock price data and volume are plotted in TTM stock charts and these trading charts form the basis of technical analysis.
See Tata Motors bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. Technical analysis uses an approach for Tata Motors stock analysis that does not care for the fair value of a company but uses price and volume data only.
Tata Motors Moving Average
Moving averages help predict the price direction of TTM 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 Tata Motors are mostly signals of long term trends and will help long term traders.
Tata Motors 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 TTM stock. Currently the stock price of $17.51 is in the lower range of Tata Motors bollinger bands.
Tata Motors 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 Tata Motors MACD line is above the signal line.
Tata Motors Relative Strength Index
This technical indicator compares the relative strength or weakness of a stock. It measures the magnitude of rise or fall in stock price movements . If the RSI of TTM stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.