WashingtonFirst Bankshares Technical Analysis (NASDAQ:WFBI)
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 WashingtonFirst Bankshares 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 WFBI 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 WashingtonFirst Bankshares. 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 WashingtonFirst Bankshares stock analysis.
WashingtonFirst Bankshares Moving Average
Moving averages help predict the price direction of WFBI stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. The longer the duration of the moving average, the higher the lag. For example, 200 day moving averages for WashingtonFirst Bankshares are mostly signals of long term trends and will help long term traders.
WashingtonFirst Bankshares 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 WFBI stock. The stock price is trading between the average and the upper band in the context of WashingtonFirst Bankshares bollinger bands.
WashingtonFirst Bankshares 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 WashingtonFirst Bankshares MACD indicator can be used to identify bullish and bearish trends for the stock.
WashingtonFirst Bankshares 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. 50.59 is the RSI value of WFBI stock.