Aberdeen Leaders Limited (ASX:ALR) HEFFX Highlights

Aberdeen Leaders Limited (ASX:ALR) HEFFX Highlights

Aberdeen Leaders Limited (ASX:ALR) HEFFX Highlights

  • The Money Flow Indicator for Aberdeen Leaders Ltd (ALR.AX) has touched above 60 and has found a place on investor’s radar as it potentially near the key 70 mark. The MFI indicator is an oscillator which ranges between fixed values of 0 and 100 and as with most oscillators divergences form a major part of trading with the MFI indicator.
  • Traders look for divergence between the indicator and the price action. If the price trends higher and the MFI trends lower (or vice versa), a reversal may be imminent. Market tops tend to occur when the MFI is above 70 or 80. Market bottoms tend to occur when the MFI is below 20.
  • Investors should however be wary of trading these levels blindly. As the warning goes, an overbought market can remain overbought for an extended period. Strong trends can present a problem for these classic overbought and oversold levels. The MFI can become overbought, and prices can simply continue higher when the uptrend is strong.
  • Conversely, the MFI can become oversold, and prices can simply continue lower when the downtrend persists. Like the RSI, this indicator is best used in conjunction with another indicator as confirmation.

Aberdeen Leaders Limited is an investment company. The Company’s investment objective is to invest primarily in companies within the S&P/Australian Securities Exchange (ASX) 200 Accumulation index. By investing primarily in companies within the S&P/ASX 200 index, it seeks to provide investors with high capital growth over the medium to long term. The Company is involved in making investments, and deriving revenue and investment income from listed securities and unit trusts in Australia. The Company invests in various sectors, such as materials, healthcare, property, utilities, energy, telecommunication services, consumer staples, consumer discretionary, industrials and information technology. The Company operates in Australia and in securities industry. The Company’s investment manager is Aberdeen Asset Management Limited.

Overall, the bias in prices is: Upwards.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

The projected upper bound is: 1.19.

The projected lower bound is: 1.12.

The projected closing price is: 1.15.

ABERDEEN FPO closed unchanged at 1.155. Volume was 74% below average (consolidating) and Bollinger Bands were 6% narrower than normal.

Open      High     Low        Close     Volume
1.155      1.155      1.155      1.155      10,000

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

Moving Averages: 10-period      50-period      200-period
Close:                       1.16                1.16                 1.13
Volatility:                13                   20                   26
Volume:                  33,322           39,498           36,141

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

ABERDEEN FPO is currently 2.3% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of ALR.AX at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on ALR.AX and have had this outlook for the last 12 periods.

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 33.3333. This is not an overbought or oversold reading. The last signal was a sell 10 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 49.19. 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 sell 232 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 -44. This is not a topping or bottoming area. The last signal was a sell 11 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 sell 3 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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