Chart analysis for Crown 16/01/2013

By Kenneth Robson on January 16, 2013 • ( 1 )

Crown being re-rated

Aussie market trending higher

TA landmarks

Earliest data December 2007 High was $15

Most recent data, January 2013 Close 15/01/13 was $11.64

Low following GFC was $4.18 in November 2008

Dominant trading pattern was a trading range between $7.32 and $9.44, for three years from September 2009 to September 2012. This trading range is centered along the line of the 38.2% Fibonacci retracement level.

Currently the share-price is in a six month impulsive move higher which has broken above the trading range.

Momentum indicators suggest the stock is now over-bought with the RSI above 70 but the impulsive move is still strong, and the trend therefore likely to continue.

“Adumbration” for Crown 2013

The share-price has broken up through the 61.8% Fibonacci level
The next target assuming momentum continues is $15, the 100% retracement level.
RSI and MACD suggest that the stock may be over-bought and the stock-price about to undergo a correction
If so then a $15 share-price is still a way off, but is the next target.
If the stock was on one’s radar for acquisition, I would be monitoring the daily chart for a pull-back which found support at the upper level of the trading range (about $9.50) to enter; if the stock price continued to rise, a break-out entry above $12 would be justified..