Trends are close to everything, and technical analysis is the sum of all expectations, dreams and hopes. If you understand some technical analysis you can reduce your losses and narrow down the best exit and entry points. Nothing is random, and for us it is all about probabilities as we scan the entire market.
SHORT TERM COMMENTARY: Grieg Seafood [Tuesday 22 Aug. 2017]:
Buy Candidate ( 5.77)
Grieg Seafood is up by 0.13% yesterday from NOK 75.00 to NOK 75.10 , 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 Grieg Seafood has been rising in a total of 7 out of 10 days, and is up by 10.52% over the past 2 weeks. Volume fell last day by -572 202 shares and in total there was bought and sold 628 581 shares for approx. NOK 47,21 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
Grieg Seafood has broken the wide 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 NOK 73.19, a level that may pose a second chance to hit a runner. According to fan-theory NOK 85.55 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. Grieg Seafood 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 70.31 and NOK 64.94. A break down bellow any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point at Tue. 11 July 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.
RELATIVE STRENGHT INDEX (RSI)
The stock holds a RSI14 at 80 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
Grieg Seafood finds support from accumulated volume at NOK 63.40, NOK 60.85 and NOK 60.45 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.
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 2.35 between high and low and this equals 3.18%. For the last week the stock has had an daily average volatility of 3.66%.
The stock is very overbought on RSI14 (80). 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.
Grieg Seafood 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.
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