Chart Review – Orica Limited (ORI)

This is a 24 month daily candlestick chart of Chemical commodity producer Orica Limited.

orica-dy-jan17

Technical observations to be made:

  • The share-price gapped sharply lower by about $2.50 to $16.50, on the 6/8/2015, to then enter into a trading range between $12.50 and $17.
  • From a low of $12.45 on the 6/7/2016, the share price has risen steadily, forming an uptrend on the 04/10/2016, which remains intact to the present.
  • In the last three months the rising share-price has penetrated the trading range resistance (10/11/16) and then continued upwards to close the gap created early August 2015.
  • It has now tentatively penetrated the $19 resistance level to be $19.22 at the time of writing.
  • Importantly the RSI has moved upwards into the overbought zone (75.5%) warning of the possibility of a corrective move lower.

My perspective

Orica is an iconic company whose profitability is dependent on that of the mining industry. The resurgence of the share price over the past 7 months would seem to be tied to re invigoration of  miners such as BHP and RIO, from higher commodity prices.

Although the TA appearances look to be favourable at the present time, readers are advised to discuss their intentions with their stock broker, particularly since the forthcoming profit result could have a decided impact on the share price.



Categories: Chart Analyses, Chart Review

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