Bellamy’s (ASX:BAL) Possible Correction to 12.28

Bellamy’s (ASX:BAL) Possible Correction to 12.28

Bellamy’s (ASX:BAL) Possible Correction to 12.28

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 12.28.

The projected upper bound is: 15.93.

The projected lower bound is: 14.13.

The projected closing price is: 15.03.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 23 black candles for a net of 1 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 7 rising windows in the last 50 candles–this makes the current rising window even more bullish.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 78.7072. This is not an overbought or oversold reading. The last signal was a sell 8 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 75.86. 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. (*ERROR*: Function did not return a value)

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 282.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 9 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 0 period(s) ago.

Rex Takasugi – TD Profile

BELLAMYS FPO closed up 0.750 at 14.940. Volume was 39% above average (neutral) and Bollinger Bands were 72% wider than normal.

Open High Low Close Volume___
14.340 14.990 14.340 14.940 1,024,183

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 13.66 11.79 11.54
Volatility: 56 47 69
Volume: 1,074,731 716,616 1,073,337

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.

Summary

BELLAMYS FPO gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
BELLAMYS FPO is currently 29.4% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect very strong flows of volume into BAL.AX (bullish). Our trend forecasting oscillators are currently bullish on BAL.AX and have had this outlook for the last 31 periods. Our momentum oscillator is currently indicating that BAL.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.

Description

Bellamy’s Australia Limited is an Australia-based producer, supplier and marketer of organic baby food and formula. The Company offers a range of organic food and formula products for babies and toddlers. The Company’s segments include Australia, China/Hong Kong and Other. The Company’s products include infant formula, toddler milk, snacks, cereals, pastas and ready-to-eat pouches. The Company’s products are distributed in Australia, Vietnam, Singapore, Malaysia, Peoples Republic of China, including Hong Kong and New Zealand. The Company’s products are available through multiple online retailing platforms. The Company’s subsidiaries include Bellamy’s Organic Australia Pty Ltd, Bellamy’s Kitchen Pty Ltd, Yum Mum Pty Ltd, Bellamy’s Organic (Hong Kong) Company Ltd, Bellamy’s Organic (South East Asia) Pte Ltd and Bellamy’s Organic Food Trading (Shanghai) Co Ltd.
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