Validus Technical Analysis (NYSE:VR)
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 Validus 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 VR stock chart which creates a trading signal.
See Validus bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. Technical analysis essentially tries to study the supply and demand for a particular security and determine the stock trends for that security. Chartists use stock price movements for this form of Validus stock analysis.
Validus Moving Average
Moving averages show the VR 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. A key factor that impacts moving averages is the lag factor. The 20 day moving average of $67.8 is below the price of $67.88.
Validus 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 VR stock. The stock price is trading between the average and the upper band in the context of Validus bollinger bands.
Validus 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 Validus MACD indicator is below 0 indicating a bearish trend.
Validus 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 VR stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.