Austal (ASX:ASB) Looking at a Possible Bearish Divergence
Overall, the bias in prices is: Upwards.
Short term: Prices are moving.
Intermediate term: Prices are trending.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 1.32.
The projected upper bound is: 1.67.
The projected lower bound is: 1.42.
The projected closing price is: 1.54.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 3 black candles for a net of 3 white candles. During the past 50 bars, there have been 23 white candles and 22 black candles for a net of 1 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 80.8824. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 3 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 76.94. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 43 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 80. This is not a topping or bottoming area. The last signal was a sell 3 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 8 period(s) ago.
Rex Takasugi – TD Profile
AUSTAL LTD FPO closed up 0.045 at 1.535. Volume was 7% below average (neutral) and Bollinger Bands were 163% wider than normal.
Open High Low Close Volume___
1.500 1.540 1.490 1.535 1,470,773
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1.44 1.19 1.40
Volatility: 98 64 78
Volume: 2,678,760 1,848,116 1,675,209
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
AUSTAL LTD FPO is currently 9.8% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into ASB.AX (mildly bullish). Our trend forecasting oscillators are currently bullish on ASB.AX and have had this outlook for the last 28 periods. Our momentum oscillator is currently indicating that ASB.AX is currently in an overbought condition. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.
Increase your trading profits by trying Xenith 30 day free trial.
Latest posts by HEFFX Australia (see all)
- China Construction Bank (HKG:0939) Oversold and Consolidating - March 27, 2017
- Bank of China (HKG:3988) Heffx Technical Analysis - March 27, 2017
- Kaisa Group Holdings (HKG:1638) Heffx Trading Outlook - March 27, 2017