|SHORT TERM COMMENTARY: |
Nufarm Limited [Thursday 23 Mar. 2017]:
|(Autocomments)|| Buy Candidate ( 5.77) Evalutation Upgraded|
|Nufarm Limited is up by 0.31% yesterday from AUD 9.71 to AUD 9.74 , and has now gained 3 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 Nufarm Limited has been rising in a total of 7 out of 10 days, and is up by 6.68% over the past 2 weeks. Volume fell last day by -1,54 million shares and in total there was bought and sold 1,16 million shares for approx. AUD 11,31 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
|Nufarm Limited 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 9.45 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 10.10 sometime during the next 3 months. |
| Only positive signals in the chart today. Nufarm 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 9.38 and AUD 8.96. A break down bellow any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point at Wed. 01 March 2017 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 Wed. 25 January 2017 in the shortterm 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 78 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 9.71, AUD 9.10 and AUD 8.91 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 9.71 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 0.26 between high and low and this equals 2.68%. For the last week the stock has had an daily average volatility of 2.37%. |
The stock is very overbought on RSI14 (78). 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.
|Nufarm Limited 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. We have upgraded our recommandation for this stock from Weak Buy Candidate to Buy Candidate since last evaluation.|
OUR SHORT TERM CONCLUSSION: Buy Candidate.