Watsco Technical Analysis (NYSE:WSO)
Technical analysis is the study of stock price and volume data through technical charts. This analysis does not take into account the intrinsic value of a stock. Just by looking at the Watsco 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 WSO stock chart which creates a trading signal.
See Watsco bollinger bands, SMA - 200 day moving average, 50 day moving average and exponential moving averages. Technical analysis uses an approach for Watsco stock analysis that does not care for the fair value of a company but uses price and volume data only.
Watsco Moving Average
Moving averages show the average price of WSO stock over a set time period and help traders see the overall trend by smoothening out the daily variation in price movement. A key factor that impacts moving averages is the lag factor. The 20 day moving average of $185.83 is below the price of $187.9.
Watsco Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Watsco. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Watsco bollinger bands show that the stock price is $187.9, upper band is 190.78, lower band is 180.88, and the average is 185.83.
Watsco Moving Average Convergence Divergence or MACD
The moving average convergence divergence or MACD is a technical indicator which helps gauge the stock price trend, as the indicator is useful in understanding the strength, direction and momentum of the stock price. The Watsco MACD line is above the signal line.
Watsco Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of WSO stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.