White Mountains Insurance Technical Analysis (NYSE:WTM)
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 White Mountains Insurance 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 WTM 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 White Mountains Insurance. 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 White Mountains Insurance stock analysis.
White Mountains Insurance Moving Average
Moving averages help predict the price direction of WTM 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 $816.84 is above the last closing price of $802.33 and the 50 day moving average of $823.09 is above the last closing price of $802.33. The 10 and 20 day periods can predict short term moving average trends.
White Mountains Insurance Bollinger Bands
Bollinger bands comprise of a center line usually WTM SMA, and two WTM 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 lower band in the context of White Mountains Insurance bollinger bands.
White Mountains Insurance 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 White Mountains Insurance MACD indicator is below 0 indicating a bearish trend.
White Mountains Insurance 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. The relative strength index of WTM stock is 34.88.