Western Areas Ltd (ASX:WSA) Volatility is Low on a Downward Trend
Overall, the bias in prices is: Downwards.
Short term: Prices are moving.
Intermediate term: Prices are trending.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 2.79.
The projected upper bound is: 3.07.
The projected lower bound is: 2.29.
The projected closing price is: 2.68.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 19 white candles and 28 black candles for a net of 9 black candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 3 rising windows in the last 50 candles–this makes the current rising window even more bullish.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 25.8993. This is not an overbought or oversold reading. The last signal was a buy 0 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 49.40. 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 94 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 107.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 12 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 7 period(s) ago.
Rex Takasugi – TD Profile
WEST AREAS FPO closed up 0.140 at 2.690. Volume was 10% above average (neutral) and Bollinger Bands were 44% narrower than normal.
Open High Low Close Volume___
2.660 2.715 2.640 2.690 3,229,338
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 2.59 2.90 2.65
Volatility: 80 86 80
Volume: 4,019,575 3,310,949 2,477,575
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.
WEST AREAS FPO gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
WEST AREAS FPO is currently 1.6% above its 200-period moving average and is in an downward 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 WSA.AX at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on WSA.AX and have had this outlook for the last 20 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.
We are aware of the heightened political tensions globally, these must be monitored daily to protect your portfolio.
Latest posts by HEFFX Australia (see all)
- Tesla (NASDAQ:TSLA) Stock Analysis – HEFFX - October 26, 2020
- Amazon (NASDAQ:AMZN) Ready To Make A Move Ahead Of Earnings - October 26, 2020
- Buy Apple (NASDAQ:AAPL) Stock Before Earnings? - October 26, 2020