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: Kongsberg Automotive [Thursday 29 Jun. 2017]:
Buy Candidate ( 5.28)
Kongsberg Automotive is up by 0.28% yesterday from NOK 7.19 to NOK 7.26 , and has now gained 10 days in a row. It is not often stocks manage to gain so many days in a row, and a day or two with fall should be expected. In the last 10 days the price of Kongsberg Automotive has been rising in a total of 10 out of 10 days, and is up by 7.85% over the past 2 weeks. Volume fell last day by -94 324 shares and in total there was bought and sold 647 169 shares for approx. NOK 4,70 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
Kongsberg Automotive lays the middle of a strong rising trend on short term and further rise within the trend is signalized. Given the current short term trend the stock is expected to rise 26.3% during the next 3 months and with 90% probability hold a price between NOK 8.73 and NOK 9.40 at the end of this period.
Only positive signals in the chart today. Kongsberg Automotive holds buy signals from both short- and long term moving averages, but the stock has a general sellsignal from the relation between the two signals where the long term average is above the short term average. On corrections down there will be some support from the lines at NOK 0.00 and NOK 6.14. A break down bellow any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point at Mon. 12 June 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 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
Kongsberg Automotive finds support from accumulated volume at NOK 6.80, NOK 6.70 and NOK 6.42 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 0.07 between high and low and this equals 0.97%. For the last week the stock has had an daily average volatility of 2.73%.
Since the Kongsberg Automotive has been rising for 10 days in row the risk for the next couple of days have increased. We don't expect a major reaction back, the stock is in a very techincal good shape and therefor hold a positive evalution despite the very short term risk.
Kongsberg Automotive holds several positive signals and are within a strong rising trend. As the old saying says. "Let the trend be your friend.'". 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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