BC Iron Limited (ASX:BCI) HEFFX Highlights

BC Iron Limited (ASX:BCI) HEFFX Highlights

BC Iron Limited (ASX:BCI) HEFFX Highlights

BC Iron Ltd (BCI.AX)’s closing price of $0.175 has closed above it’s Parabolic SAR reading, indicating a potential trend reversal.

Parabolic SAR (or PSAR) is a simple, compact indicator that can provide some useful information when taking into account additional trends and factors. It is not typically recommended, however to use it as a stand-alone to generate trading signals. Since it is time and price based it is not adept at measuring the actual strength of a trend, merely its direction and duration. It is a good idea to use it in conjunction with additional indicators that can help determine the trend’s strength.

Active traders have a wide range of technical indicators at their disposal for when completing technical stock analysis. Currently, the 14-day ATR for BC Iron Ltd (BCI.AX) is spotted at 0.01. First developed by J. Welles Wilder, the ATR may assist traders in determining if there is heightened interest in a trend, or if extreme levels may be signaling a reversal. Simply put, the ATR determines the volatility of a security over a given period of time, or the tendency of the security to move one direction or another.

BC Iron Limited is an iron ore mining and development company. The Company’s principal activities include operation, development and exploration of mineral projects, focusing primarily on iron ore deposits in the Pilbara region of Western Australia. It operates through four segments: Iron Valley, Buckland, Nullagine Joint Venture and Other. Its projects include the Nullagine Joint Venture (NJV), Iron Valley and Buckland. The NJV is located approximately 150 kilometers north of Newman in the Pilbara region of Western Australia. The Iron Valley is a mine located in the Central Pilbara and has a mineral resources of approximately 246.8 megaton (Mt) at over 58.4% Iron (Fe) and an ore reserve of approximately 129.9 Mt at over 58.9% Fe. The Buckland is a development project, which is located in the West Pilbara region. The Company also has interest in various other exploration-stage projects in the Pilbara and royalties over the Koodaideri South and North Marillana tenements.

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 0.16.

The projected upper bound is: 0.20.

The projected lower bound is: 0.16.

The projected closing price is: 0.18.

BCIRON FPO closed up 0.005 at 0.180. Volume was 42% below average (neutral) and Bollinger Bands were 60% wider than normal.

Open      High       Low         Close       Volume
0.170      0.180      0.170      0.180      808,785

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

Moving Averages: 10-period      50-period       200-period
Close:                       0.17                0.14                 0.18
Volatility:                117                  92                    102
Volume:                   1,471,490      1,188,634      2,144,768

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

BCIRON FPO is currently 1.8% 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 BCI.AX (bullish). Our trend forecasting oscillators are currently bullish on BCI.AX and have had this outlook for the last 23 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 41.7476. This is not an overbought or oversold reading. The last signal was a sell 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 62.51. 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 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 51. This is not a topping or bottoming area. The last signal was a sell 1 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 26 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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