Telstra Corporation Ltd (ASX:TLS) Takes a Beating

Telstra Corporation Ltd (ASX:TLS) Takes a Beating

Telstra Corporation Ltd (ASX:TLS) Takes a Beating

Revenue from continuing operations rose 0.4% to $28,205 million
Profit from continuing operations grew 1.1% to $3,874 million
Telstra’s profit fell 33%, but this is due to profits from the sale of Autohome in 2016 that were not repeated this year.

Telstra maintained its dividend at 31 cents per share.
Dividends in 2018 are expected to be up to 30% lower, at 22 cents per share.

TELSTRA FPO closed down -0.370 at 3.960. Volume was 211% above average (trending) and Bollinger Bands were 24% narrower than normal.

Open High Low Close Volume___
3.950 3.985 3.810 3.960 110,857,512

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

Moving Averages: 10-period 50-period 200-period
Close:                           4.14              4.25           4.64
Volatility:                        57                 29               27
Volume:             41,027,956 32,885,256 30,546,864

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 gapped down today (bearish) on heavy volume. Possibility of a Breakaway Gap which usually signifies the beginning of a major market move. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.

TELSTRA FPO is currently 14.6% 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 0 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

Candlesticks

A white body occurred (because prices closed higher than they opened).

During the past 10 bars, there have been 6 white candles and 2 black candles for a net of 4 white candles. During the past 50 bars, there have been 18 white candles and 26 black candles for a net of 8 black candles.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 4 falling windows in the last 50 candles–this makes the current falling window even more bearish.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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.

Summary

The current market condition for TELSTRA FPO is:

Very Bearish

The close is currently Below it’s 200 period moving average.
The close is currently Below it’s 90 period moving average.
The close is currently Below it’s 30 period moving average.

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S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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