Telstra Corporation Ltd (ASX:TLS) Sign Long-Term Solar Agreement

Telstra Corporation Ltd (ASX:TLS) Sign Long-Term Solar Agreement

Telstra Corporation Ltd (ASX:TLS) Sign Long-Term Solar Agreement

  • Telstra has made its latest acquisition in the technology space with the telco picking up UK-based technology services business Company85.
  • According to Telstra, the deal will help expand its services footprint internationally, with a particular focus on servicing the UK and European enterprise customers.
  • Last week, Telstra announced it had inked a deal with a new 70 megawatt (MW) solar farm near Emerald in Queensland to insure itself against rising power prices.
  • It is one of the biggest Australian companies to sign a solar long-term power purchase agreement (PPA).
  • Telstra has teamed up with the renewable energy developer RES Australia to buy all the output of the solar farm.
  • Executive director of Telstra Energy, Ben Burge, says it is all about risk management.
  • “Energy is largely a commodity market not dissimilar to currencies and interest rates,” Mr Burge said.

Telstra Corporation Limited (Telstra) is a telecommunications and technology company. Its principal activity is to provide telecommunications and information services for domestic and international customers. The Company operates through four segments. The Telstra Retail segment provides telecommunication products, services and solutions across mobiles, fixed and mobile broadband, telephony and Pay television/Internet Protocol television and digital content. The Global Enterprise and Services segment provides sales and contract management for business and government customers. The Telstra Operations segment offers overall planning, design, engineering and architecture and construction of Telstra networks, technology and information technology solution. The Telstra Wholesale segment provides a range of telecommunication products and services delivered over Telstra networks and associated support systems to other carriers, carriage service providers and Internet service providers.
Overall, the bias in prices is: Downwards.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

The projected upper bound is: 4.67.

The projected lower bound is: 4.24.

The projected closing price is: 4.46.

TELSTRA FPO closed up 0.010 at 4.460. Volume was 24% below average (neutral) and Bollinger Bands were 64% narrower than normal.

Open High Low Close Volume___
4.450 4.475 4.430 4.460 25,653,184

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

Moving Averages: 10-period         50-period       200-period
Close:                       4.45                  4.41                  4.85
Volatility:                12                      32                     25
Volume:                   32,081,012     36,027,840     29,302,070

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 8.1% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of TLS.AX at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on TLS.AX and have had this outlook for the last 18 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 58.5366. This is not an overbought or oversold reading. The last signal was a buy 4 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 53.09. 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 33 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 -2. This is not a topping or bottoming area. The last signal was a sell 8 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 5 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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