Downer Group Taking Full Control

Downer Group Taking Full Control

Downer EDI extended its $1.2 billion takeover bid for Spotless Group last night in a last-ditch effort to secure another 7 per cent of the target and avoid having hundreds of shareholders locked in as minorities in a listed company.

Downer had snared 83 per cent of Spotless and an about-face from the target board to recommend the bid, but was still short of the 90 per cent threshold that would allow it to compulsorily acquire the outstanding shares and take full control. It had previously said if it reached 75 per cent acceptances it planned to delist the company. But in an update early yesterday the remaining independent directors of Spotless said the takeover was unlikely to occur while there were so many shareholders outstanding.

Technical Analysis

Overall, the bias in prices is: Upwards.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

The projected upper bound is: 6.65.

The projected lower bound is: 6.07.

The projected closing price is: 6.36.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 32 white candles and 18 black candles for a net of 14 white candles.

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 68.0000. This is not an overbought or oversold reading. The last signal was a buy 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 53.85. 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 71 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 71. 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 3 period(s) ago.

Rex Takasugi – TD Profile

DOWNER EDI FPO closed up 0.080 at 6.360. Volume was 52% below average (consolidating) and Bollinger Bands were 59% narrower than normal.

Open   High    Low     Close   Volume
6.280   6.420  6.240  6.360   1,711,170

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

Moving Averages: 10-period   50-period   200-period
Close:                       6.29            6.28              6.00
Volatility:                35                30                 48
Volume:                   2,131,783   2,478,888   2,696,938

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

DOWNER EDI FPO is currently 6.0% 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 DOW.AX at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on DOW.AX and have had this outlook for the last 8 periods.

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Ivy Heffernan

Ivy Heffernan, student of Economics at Buckingham University. Junior Analyst at HeffX and experienced marketing director.

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