Westpac Banking Technical Analysis (NYSE:WBK)
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 Westpac Banking stock price data and volume are plotted in WBK stock charts and these trading charts form the basis of technical analysis.
See Westpac Banking bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. The technical analysis form of Westpac Banking stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Westpac Banking Moving Average
Moving averages show the average price of WBK stock over a set time period and help traders see the overall trend by smoothening out the daily variation in price movement. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for Westpac Banking are mostly signals of long term trends and will help long term traders.
Westpac Banking 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 WBK stock. Currently the stock price of $21.98 is in the upper range 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 can be used to identify bullish and bearish trends for the stock.
Westpac Banking 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 WBK stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.