|SHORT TERM COMMENTARY: |
Fairfax (John) Holdings Limited [Monday 22 May. 2017]:
|(Autocomments)|| Buy Candidate ( 6.17) |
|Fairfax (John) Holdings Limited is up by 0.81% yesterday from AUD 1.24 to AUD 1.25 In the last 10 days the price of Fairfax (John) Holdings Limited has been rising in a total of 6 out of 10 days, and is up by 14.68% 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 16,04 million more shares than the day before. In total there were bought and sold 26,29 million shares for approx. AUD 32,87 million.|
3 MONTH TREND
|Fairfax (John) Holdings Limited has broken the strong 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 1.20, a level that may pose a second chance to hit a runner. According to fan-theory AUD 1.33 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. Fairfax (John) Holdings 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 1.17 and AUD 0.98. A break down bellow any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point at Mon. 24 April 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 79 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 1.24, AUD 1.16 and AUD 1.09 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 1.24 may give a very hugh drop in the stockprice.
|This stock may move much during a day (volatility) and with a large prediction interval from the Bollingers Bond this stock is considered to be "high risk". Last day they the stock moved AUD 0.01 between high and low and this equals 0.80%. For the last week the stock has had an daily average volatility of 0.84%. |
The stock is very overbought on RSI14 (79). 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.
|Several short term signals along with are positive, and the stock has broken the rising trend up which indicates even stronger rising rate and we conclude that current level may hold a buying opportunity as there is a fair chance for this stock to perform well in the short term. |
OUR SHORT TERM CONCLUSSION: Buy Candidate.