Westpac Banking Technical Analysis (NYSE:WBK)
Technical chart patterns are studied in depth by people who strongly believe in technical analysis. These type of investors who look at trading charts or technical stock charts are usually traders rather than value investors. Just by looking at the Westpac Banking 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 WBK 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 Westpac Banking. Technical analysis is used by finance professionals and is popular among traders, especially day traders. Undertaking Westpac Banking stock analysis using these technical indicators helps identify trading opportunities.
Westpac Banking Moving Average:
Moving averages help predict the price direction of WBK stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. A rise in trend over the long term indicates a long term uptrend. Similarly a falling WBK moving average implies that Westpac Banking stock price is falling.
Westpac Banking Bollinger Bands:
Bollinger bands comprise of a center line usually WBK SMA, and two WBK stock price bands above and below it. The stock is considered over brought 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 lower band in the context of Westpac Banking bollinger bands.
Westpac Banking 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 Westpac Banking MACD indicator is below 0 indicating a bearish trend.
Westpac Banking Relative Strength Index:
The RSI is a valuable tool to determine overbought / oversold stocks and measures the recent performance of a stock in relation to its own stock price history. The relative strength index of WBK stock is 46.82. .