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: Northern Trust Corp. [Wednesday 26 Apr. 2017]:
Buy Candidate ( 7.48)
Northern Trust Corp. is up by 0.59% yesterday from USD 91.45 to USD 91.99 , 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 Northern Trust Corp. has been rising in a total of 7 out of 10 days, and is up by 7.69% over the past 2 weeks. Volume fell last day by -600 255 shares and in total there was bought and sold 855 118 shares for approx. USD 78,66 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
Northern Trust Corp. 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 USD 91.33, a level that may pose a second chance to hit a runner. According to fan-theory USD 97.31 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. Northern Trust Corp. 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 USD 88.23 and USD 87.41. A break down bellow any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point at Fri. 14 April 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.
* 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 USD 91.45, USD 88.69 and USD 86.41 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 91.45 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 USD 1.90 between high and low and this equals 2.10%. For the last week the stock has had an daily average volatility of 2.23%.
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.
Northern Trust Corp. 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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