Redwood Trust Technical Analysis (NYSE:RWT)
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 Redwood Trust 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 RWT stock chart which creates a trading signal.
View technical indicators like moving averages - SMA and EMA, and bollinger bands for Redwood Trust. 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 Redwood Trust stock analysis.
Redwood Trust Moving Average
Moving averages help predict the price direction of RWT stock based on certain triggers, but with a lag, and form building blocks for other technical indicators like the MACD and bollinger bands. A key factor that impacts moving averages is the lag factor. The 20 day moving average of $16.47 is above the price of $16.21.
Redwood Trust 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 RWT stock. Redwood Trust bollinger bands show that the stock price is $16.21, upper band is 17.16, lower band is 15.78, and the average is 16.47.
Redwood Trust Moving Average Convergence Divergence or MACD
Two important concepts with respect to moving average convergence divergence or MACD are: crossovers and divergence. When the MACD rises above the signal line, it typically indicates a bullish trend and most likely the stock prices will go up. The Redwood Trust MACD line is below the signal line.
Redwood Trust Relative Strength Index
The RSI technical indicator is a momentum oscillator. It compares the speed and change in price movements. If the RSI of RWT stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.