Chart analysis for Crown 16/01/2013

 

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..

 



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  1. Market Forging Higher, Not Yet Warning of a Top | Machholz's Blog

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