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: Avery Dennison Corporation [Wednesday 28 Jun. 2017]:
Buy Candidate ( 7.03)
Avery Dennison Corporation is up by 0.44% yesterday from USD 88.42 to USD 88.81 , and has now gained 6 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 Avery Dennison Corporation has been rising in a total of 8 out of 10 days, and is up by 3.65% over the past 2 weeks. Volume also increased last day along with the price which is positive technical sign, and in total there was traded 27 257 more shares than the day before. In total there were bought and sold 217 881 shares for approx. USD 19,35 million.
3 MONTH TREND
Avery Dennison Corporation has broken the narrow 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 USD 88.38, a level that may pose a second chance to hit a runner. According to fan-theory USD 91.98 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. Avery Dennison Corporation 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 87.87 and USD 82.24. A break down bellow any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point at Thu. 18 May 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)
RSI14 is 89 and the stock is extremely overbought on RSI14, but may as well continue to gain. Some stocks do their best performance while being overbought, but it is very seldom RSI remains so high for a long time without short corrections. Risk has therefore increased and larger daily movements can be expected for the next couple of days.
SUPPORT AND RESISTANCE
Avery Dennison Corporation finds support from accumulated volume at USD 83.12, USD 82.18 and USD 82.09 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 USD 0.99 between high and low and this equals 1.12%. For the last week the stock has had an daily average volatility of 0.87%.
The stock is very overbought on RSI14 (89). 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. Since the Avery Dennison Corporation has been rising for 6 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.
Avery Dennison Corporation 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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