Westamerica Technical Analysis (NASDAQ:WABC)
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 Westamerica 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 WABC 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 Westamerica. 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 Westamerica stock analysis.
Westamerica Moving Average
Moving averages help predict the price direction of WABC stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. The 20 day moving average of $58.75 is below the last closing price of $60.68 and the 50 day moving average of $57.74 is below the last closing price of $60.68. The 10 and 20 day periods can predict short term moving average trends.
Westamerica Bollinger Bands
Bollinger bands comprise of a center line usually WABC SMA, and two WABC 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. The stock price is trading between the average and the upper band in the context of Westamerica bollinger bands.
Westamerica 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 Westamerica MACD indicator can be used to identify bullish and bearish trends for the stock.
Westamerica 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 . 77.08 is the RSI value of WABC stock.