Time Warner Cable Technical Analysis (NYSE:TWC)
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. Just by looking at the Time Warner Cable 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 TWC stock chart which creates a trading signal.
See Time Warner Cable bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. The technical analysis form of Time Warner Cable stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Time Warner Cable Moving Average
Moving averages show the TWC stock price trend. The two most popular types of moving averages are the Simple Moving Average or SMA and the Exponential Moving Average or EMA. The 20 day moving average of $211.06 is above the last closing price of $209.56 and the 50 day moving average of $205.93 is below the last closing price of $209.56. The 10 and 20 day periods can predict short term moving average trends.
Time Warner Cable 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 TWC stock. Currently the stock price of $209.56 is in the lower range of Time Warner Cable bollinger bands.
Time Warner Cable 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 Time Warner Cable MACD indicator is below 0 indicating a bearish trend.
Time Warner Cable Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of TWC stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.