|SHORT TERM COMMENTARY: |
Orkla [Monday 22 May. 2017]:
|(Autocomments)|| Weak Buy Candidate ( 3.22) |
|Orkla fell by -0.47% last day from NOK 84.85 to NOK 84.45. . In the last 10 days the price of Orkla has been rising in a total of 7 out of 10 days, and is up by 4.84% over the past 2 weeks. Volume fell last day along with the stock which actually is a good sign as volume should follow the stock. Last day the tradingvolume fell by -1,06 million shares and in total there was bought and sold 1,66 million shares for approx. NOK 139,86 million.|
3 MONTH TREND
|Orkla has broken the 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 NOK 82.97, a level that may pose a second chance to hit a runner. According to fan-theory NOK 89.16 will be next possible trendtop level and thereby pose a resistancelevel which may not be broken on first attempt. |
|Orkla 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 NOK 82.79 and NOK 77.28. A break down bellow any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point at Fri. 21 April 2017 and this indicates further gains until a new top pivot has been found. Some negative signals issued as well, and these may have some influence on the very short term development. Volume fell together with the price last trading day, and this reduces the overall risk as volume should follow the pricemovements. |
The stock had a Golden Cross Signal in both short, medium and long term. The shortterm Golden Cross Signal was issued Fri. 14 April 2017, the mediumterm Wed. 26 April 2017 and the longterm was issued atWed. 26 April 2017 .
* 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)
|RSI14 is 87 and the stock is extremely overbought on RSI14 and further reactions should be expected. Some stocks may have a long and hard correction after reaching so high RSI, but not in all cases. However, the short term risk has increased drastically and larger movements in the next couple of days can be expected. |
SUPPORT AND RESISTANCE
|Orkla finds support from accumulated volume at NOK 77.10, NOK 77.00 and NOK 73.75 On the upside the stock meets some resistance just above today's level from accumulated volume at NOK 84.85. |
The stock is about to test the resistance at NOK 84.85. If this level is broken the stock may move faster and we often see a peak in the end of such a break posing a good sales opportunity as you in 90% of the cases will get a reaction back to the level broken before new gains. A break should be followed by a increasing volume else the break may be false and despite a break of the actual resistance level the stock pretty soon falls back.
|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 NOK 0.90 between high and low and this equals 1.07%. For the last week the stock has had an daily average volatility of 1.12%. |
The stock is very overbought on RSI14 (87). 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. Due to a possible false trendbreak a pure Buy Recommandition are held back. |
OUR SHORT TERM CONCLUSSION: Weak Buy Candidate.