Telstra (ASX:TLS) Possible Correction Towards 5.36

Telstra (ASX:TLS) Possible Correction Towards 5.36

Telstra (ASX:TLS) Possible Correction Towards 5.36

Overall, the bias in prices is: Downwards.

Short term: Prices are stalling.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 5.36.

The projected upper bound is: 5.25.

The projected lower bound is: 4.93.

The projected closing price is: 5.09.

Telstra Corporation Ltd

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 4 black candles for a net of 1 white candles. During the past 50 bars, there have been 17 white candles and 29 black candles for a net of 12 black candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is 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 72.8814. This is not an overbought or oversold reading. The last signal was a buy 2 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 40.34. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 2 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 -30. This is not a topping or bottoming area. The last signal was a buy 2 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

TELSTRA FPO closed up 0.080 at 5.100. Volume was 22% above average (neutral) and Bollinger Bands were 29% wider than normal.

Open High Low Close Volume___
5.050 5.110 5.040 5.100 32,158,952

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 5.07 5.47 5.43
Volatility: 24 20 22
Volume: 31,326,932 28,015,982 25,861,466

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

TELSTRA FPO is currently 6.1% below its 200-period moving average and is in an downward 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 volume flowing into and out of TLS.AX at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on TLS.AX and have had this outlook for the last 27 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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