|SHORT TERM COMMENTARY: |
Incitec Pivot Limited [Wednesday 1 Nov. 2017]:
|(Autocomments)|| Buy Candidate ( 5.67) |
|Incitec Pivot Limited is up by 1.31% yesterday from AUD 3.83 to AUD 3.88 , and has now gained 4 days in a row. It will be exciting to see if it manages to continue the gaining strike or take a minor break for the next few days. In the last 10 days the price of Incitec Pivot Limited has been rising in a total of 6 out of 10 days, and is up by 3.47% over the past 2 weeks. Volume also increased last day along with the price which is positive technical sign, and in total there was traded 4,98 million more shares than the day before. In total there were bought and sold 8,32 million shares for approx. AUD 32,26 million.|
3 MONTH TREND
|Incitec Pivot Limited has broken the narrow and weak rising short term trend up and even stronger raising rate are indicated. On reaction back there will be support on the roof on the current trend broken, which is AUD 3.87, a level that may pose a second chance to hit a runner. According to fan-theory AUD 3.98 will be next possible trendtop level and thereby pose a resistancelevel which may not be broken on first attempt. |
| Only positive signals in the chart today. Incitec Pivot Limited 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 3.80 and AUD 3.48. A break down bellow any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point at Fri. 13 October 2017 and this indicates further gains until a new top pivot has been found. Volume is rising along with the price. This is considered to be a good technical signal. |
RELATIVE STRENGHT INDEX (RSI)
|The stock holds a RSI14 at 72 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
|On the downside the stock finds support just bellow today's level from accumulated volume at AUD 3.71, AUD 3.66 and AUD 3.58 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. |
With no support from accumulated volume bellow todays level the risk is increased as drop bellow the support at 3.71 may give a very hugh drop in the stockprice.
|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 0.07 between high and low and this equals 1.83%. For the last week the stock has had an daily average volatility of 1.31%. |
The stock is very overbought on RSI14 (72). 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.
|Incitec Pivot Limited holds several positive signals and have broken the weak rising 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.