SHORT TERM COMMENTARY:
Stockland [Monday 6 Sep. 2010]:
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| (Autocomments) | Buy Candidate ( 6.89) |
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Stockland is up by 1.72% yesterday from AUD 4.08 to AUD 4.15 In the last 10 days the price of Stockland has been rising in a total of 6 out of 10 days, and is up by 6.41% over the past 2 weeks. Volume fell last day by  -3,15 million shares and in total there was bought and sold 7,12 million shares for approx. AUD 29,56 million. You should note that falling volume on higher prices causes divergence and may be an early warning about possible changes for the next couple of days. |
3 MONTH TREND |
| Stockland has broken the horizontal trend up. Breaks like this is often followed by swift and strong movements, and any correction down to the breakline at approx. AUD 4.12 is considered to be a "second chance" to hit a potential runner. It is, however, important that volume does follow the price as false breaks may appear and it may move back into the horizontal trend. Based on the rectangle-formation theory the stock is predicted to reach AUD 4.51 sometime during the next 3 months. |
SIGNALS |
Only positive signals in the chart today. Stockland holds buy signals from both short- and long term moving averages. In addition there is a general buysignal from the relation between the two signals where the short term average is above the long term average. On corrections down there will be some support from the lines at AUD 4.00 and AUD 3.88. A break down bellow any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point at Wed. 11 August 2010 and this indicates further gains until a new top pivot has been found. Volume fell last trading day despite gaining prices. This causes a divergence between volume and price and may be an early warning. The stock should be watched closly.
The stock had a Golden Cross Signal at Fri. 19 February 2010 in the longterm chart.
* Golden Cross Signal is when the shortterm moving average, the longterm moving average and priceline meets in a special combination. This combination is very rare and are often followed by long and strong gains for the stock in question. |
RELATIVE STRENGHT INDEX (RSI) |
| The stock holds a RSI14 at 75 and is currently being overbought on RSI. This does not have to be a sales signal as many stocks may go both long and hard while being overbought on the RSI. It is therefore important to evalute the historic of the share as it may tell you something about the RSI-sensitiveness. |
SUPPORT AND RESISTANCE |
Stockland finds support from accumulated volume at AUD 3.92, AUD 3.89 and AUD 3.86 There is no resistance from accumulated volume above today's level and given the right condition the stock may perform very well in the next couple of days.
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RISK |
This stock is usually traded at good volume, and with minor daily changes the risk is considered to be low. Last day they the stock moved AUD 0.09 between high and low and this equals 2.22%. For the last week the stock has had an daily average volatility of 1.75%.
The stock is very overbought on RSI14 (75). Normally this will pose a good selling opportunity, but since the stock has broken the trend up the chance for a major correction due to high RSI is very little as the stock will find support at the trend broken. |
OUR EVALUATION |
Stockland holds several positive signals and have broken the horisontal trend up. As is the stock are in a very good technical shape. We therefor consider to be a good choice at current levels and are expecting further gains during the next 3 months.
OUR SHORT TERM CONCLUSSION: Buy Candidate. |
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