Technical-Analysis-21st-june-2018-hero-image

Technical Analysis 21st June 2018

We take a look at three stocks within the Australian Listed companies space, the first ASX listed Woodside petroleum has provided a third Buy Zone entry, this stock first reviewed in 2016 and again early 2018.

Our second company, ASX listed Smart group, providing fleet management and salary packaging, shows a very strong primary trend and has now entered a Buy Zone.

And our international stock today is NASDAQ listed Kraft foods the stock has entered into a new Primary uptrend and now provides the Buy Zone entry.


Woodside Petroleum Ltd (Woodside)


Woodside Petroleum Ltd (Woodside) is an oil and gas company. The Company is engaged in hydrocarbon exploration, evaluation, development, production and marketing.

Production and sale of liquefied natural gas, pipeline natural gas, condensate, liquefied petroleum gas and crude oil from the North West Shelf ventures.

Its Pluto LNG project is engaged in exploration, evaluation, development, production and sale of liquefied natural gas and condensate in assigned permit areas.

Another segment comprises trading and shipping activities in the United States, Canada, Senegal, and Myanmar. Woodside petroleum has provided a Third Buy zone entry identified in March 2018 this has met the price target with a small retracement. The overall pattern has now developed into a Bullish inverse head and shoulder pattern.

The following price retracement has provided the right shoulder higher low with a corresponding price movement back over the neckline. The overall pattern now provides an extended price target of $40.00.

Comfirming the entry signal is the Ralative strength Indicator 14 remaining over the key 50 level and further confirmed with the MACD providing a swing Buy signal. Primary Trend is UP. The important Stop Loss is set at $31.80 has this indicate overall break of support and trend failure.


Smart Group Corporation Ltd


Smart group Corporation Ltd is an Australia company, which is engaged in outsourced administration, including salary packaging, novated leasing, software, distribution and services, and fleet management services.

The Outsourced administration provides outsourced salary packaging services, The Vehicle services segment is engaged in end-to-end fleet management services.

The SDGS segment provides salary packaging software solutions, distribution of vehicle insurances and information technology services.

Its employee benefits brands include Smart salary, Smart leasing, Smart fleet, The Company serves the corporate, health and government sectors.

The weekly chart of SIQ smart group shows a multi year Primary UP trend, with price resistance at $5.00 and $7.60 and recently at $11.50 along with an established long term trend line.

The Buy zone entry is established at the breakout of the current ascending pattern and provides an extended price target of $15.80.

During the formation of the ascending pattern the volume study shows a decline in trading volumes indicating a lack of sellers during this consolidation with high volume at the breakout into the Buy Zone entry.

The Relative strength Indicator 14 remains over the 50 level suggesting continued positive price momentum.

However an important Stop loss set at $10.38 as this would indicated overall trend failure and a breakdown from the long term trend line.


The Kraft Heinz Company


The Kraft Heinz Company is a food and beverage company. The Company is engaged in the manufacturing and marketing of food and beverage products, including condiments and sauces, cheese and dairy, meals, meats, refreshment beverages, coffee and other grocery products.

Segments include the United States, Canada and Europe. The Company’s brands include Heinz, Kraft, Oscar Mayer, Philadelphia, Planters, Velveeta, Maxwell House, Capri Sun, and Ore-Ida.

Products are sold through its own sales organizations, independent brokers, wholesale, cooperative and independent grocery accounts, convenience stores, drug stores, value stores, bakeries and pharmacies.

The Daily chart of Kraft Heinze shows a down trend from February to April 2018. Highlighted is the Bullish price divergence between March April 2018, marked A – B This type of divergence between falling price and the rising Relative strength Indicator 14 is often the precursor to a change in Primary trend.

During May – June a continuation pennant has seen a Bollinger Band squeeze and further price breakout towards the upper Bollinger Band, a sign of high relative volatility.

The BUY Zone entry is set above the current resistance level of $62.30 with the Relative strength Indicator showing strong momentum and the accompanying rising volume further indicates a new trend underway.

A further price target of $77.40 is set with a Stop loss also set at $59.90. In the event of trend failure the important STOP Loss is to protect capital.

Leave a Reply

Your email address will not be published. Required fields are marked *