Technical Analysis Of Signature International

A technical view of Signature International. Is the stock in an uptrend or downtrend. In this article we will seek to learn about what might happen to Sign from a technical point of view.

16 April 2019 Tuesday

We can say that Signature has already started a new daily uptrend.

By taking a look at the daily chart below, it is now trading above its 20 MA, 50 MA and 200 MA. All this points to health in the stock.

However, do remember that this stock has been in a long term downtrend for a very very long time. Therefore there are quite a lot of resistance overhead.

Long term resistance will not be easy to overcome and all these takes time.

The fact that the stock has gone back above the well followed 200 day moving average hints to us that this stock has turned into an investing quality. A stock that is below its 200 MA is usually ignored by most investors. So I would say that it may turn up in some investor's radar from now on.

Take note of the resistance area that I have circled. I don't think this would be easy to overcome. It takes time so Signature would most probably follow the pattern of a wave going up and then declining.

Take note of the support area I have drawn as well. Yes the stock is still above the 20 MA. A sign that short term it is still bullish. Do beware if it falls below the support area as well as the 20 MA.

If it falls below the 20 MA, the next area it may fall to is the 50 MA which is the blue line on the chart.