Technical-Analysis-31st-may-2018-hero-image

Technical Analysis 31st May 2018

We take a look at two stocks within the Australian Listed companies space, the first ASX listed Southern Cross media This equity has emerged from the price recent retracement into the BUY ZONE.

Our second company, Spark infrastructure provided the 1st BUY ZONE entry during Q1 2016 and now following a completion of the price target a long consolidation followed the equity now enters a new BUY Zone.

And our international stock today is NASDAQ listed EA Electronic Arts, who provide cutting edge software for the Global gaming and entertainment industry. The stock has recently completed a major volatility pattern and enters the Buy Zone within the primary up trend.


Southern Cross Media Group


Southern Cross Media Group Limited is engaged in the creation and broadcasting of content on free-to-air commercial radio, television and online media platforms across Australia.

The Company offers a range of content across free to air television, approximately 80 metropolitan and regional FM and AM radio stations, digital audio and radio, social media networks, online events.

Broadcast channels include seven, 7mate and 7two, nine, ten, life, Go, Gem, eleven and Channel one. The Weekly chart of Southern Cross media shows the Relative strength price divergence from Q1 2016 leading the down turn in price through too Q1 – 2018. During Q1 and Q2 – 2018 bullish price divergence has preceeded a price reversal. This type of divergence is a highly reliable technical signal of price reversal.

As the follow on price movement progressed to the recent breakout of the short term down trend line following the “higher low” this has provided a Buy Zone entry. The forward price target is set at $1.65 Supporting this Buy Zone Entry signal, is the Relative strength Indicator 14, as it moves higher over the key “50” level and is a sign of positive price momentum.

The important STOP LOSS is indicated at $1.12, should price move to this level it would indicate a break down in price structure below the “higher low” support level of $1.14 and below the current up trend breakout.


Spark New Zealand Limited


Spark New Zealand Limited is a supplier of telecommunications and digital services in New Zealand. The Company operates through four segments: Spark Home, Mobile & Business; Spark Digital, and Spark Connect.

The Company provides a range of telecommunications, and ICT products and services, including local, national, international and telephone services; data networks, broadband services and Internet television; IT services and procurement; equipment sales and installation.

Spark infrastructure was featured on Technical analysis during Q1 2016 with the price target being met shortly afterwards in Q3 2016. The current weekly chart shows the price retracement establishing support (2) at $3.10. The following price rally “high” made during Q3 – 2017 remained below the Q3 – 2016 $3.72 closing price high.

During Q1 2018 the support level of $3.10 was again tested (3). Multiple retests are a strong sign of price support, the Buy Zone has been established following the higher low and a break of the short term trend line. The first price target of $3.85 is shown with a 2nd price target of $4.30 shown.

Relative strength Indicator 14 has confirmed price momentum with the indicator swinging back over the key 50 level. An important Stop loss set at $3.05 as this would indicated overall trend failure and a break of the important support level identified at points 1,2 and 3.


Electronic Arts Inc.


Electronic Arts Inc. develops, markets, publishes and distributes games, content and services that can be played by consumers on a range of platforms, which include consoles, personal computers (PCs), mobile phones and tablets.

The Company’s games and services are based on a portfolio of intellectual property that includes established brands, such as FIFA, Madden NFL, Star Wars, Battlefield, the Sims and Need for Speed.

PC games and additional content can be downloaded directly through its Origin online platform, Its mobile, tablet and PC free-to-download games and additional content are available through third-party application storefronts, such as the Apple Application Store and Google Play.

EA electronic arts Weekly chart has 2 major volatility patterns shows. These patterns are marked with the swing points 1,2,3 and 4. During Q4 2016 the volatility pattern completed with a higher low prior to the breakout and continuation of the primary UP trend.

The current volatility pattern has completed the higher low prior to the current breakout into the BUY Zone. The current Buy Zone sets the price target at $153.00 within this primary UP trend. In the event of trend failure the important STOP Loss is set at $116.60, this would indicate a break down of the upward price trend below the recent higher low price point.

Leave a Reply

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