Global stocks: 3 buys and 1 sell

Published August 29, 2018

This week we have chosen to write about four well known liquid stocks from three different markets around the globe.

Our analysis is majorly based on trend, as it is said, ‘trend is your best friend’ with more focus on the medium term chart. We also take into account price formations and volume and momentum indicators. More can be read about Investtech's research at www.thetrendbible.com.

Note: These stocks are traded in currency based on the country they are listed on.

Netflix Inc (NFLX.NA) Close: 368.49


Netflix Inc is in a rising trend channel in the medium term. Rising trends indicate that the company experiences positive development and the buy interest among investors is increasing.
Volume tops and volume bottoms correspond well with tops and bottoms in the price and hence give a positive volume balance, which is indicated by green arrows on the right bottom corner of the chart. Rising momentum suggests underlying strength in the stock price.
The stock has recently tested support around 317 dollars and started to rise again. There is resistance around 419 and a close over that level can be a new buy signal. The stock is overall assessed as technically positive for the medium term.
Netflix shares are listed on Nasdaq, the US, and is traded in dollars.
Investtech's recommendation: Buy

 

Vestas Wind Systems (VWS.co) Close: 456.20


After falling over 42 percent since July last year, Vestas Wind Systems established a bottom around 353 kroner and traded more sideways between the support around 385 kroner and resistance around 454 kroner this year. The stock has now broken out of the trading range and given a buy signal. This recent rise in price is also supported by higher volume. Also, short-term momentum of the stock is strongly positive, with RSI above 70. This indicate increasing optimism among investors and further price increase for Vestas Wind Systems.
Next resistance level is not before 563 kroner on Investtech’s medium term chart. However, there is support around 434 kroner. This gives a favorable risk-reward ratio.
Vestas Wind Systems is traded on the Copenhagen exchange, Denmark, and is traded in Danish kroner.
Investtech's recommendation: Buy

 

ITC Limited (ITC.NS) Close: 311.65 


ITC Limited has broken up through the ceiling of the rising trend channel in the medium long term. This suggests that investors have steadily paid more to buy the stock, which indicates increasing optimism and suggests further rise in price. There is support around 301 rupees in the short term. Resistance is around 342 rupees and a close over this level may initiate new buy.
Positive volume balance and strong momentum strengthens the stock in the short term.
ITC Limited is listed on the National Stock Exchange, India, and is traded in rupees.
Investtech's recommendation: Buy

 

The Kraft Heinz Comp (KHC.NA) Close: 58.79


The Kraft Heinz Comp share price has fallen sharply since topping out early last year and is still in a downward falling trend channel. Further price fall is suggested.
The stock has faced resistance around 64.50 level a couple of times, but failed to break over. A close above this level may turn out to be an early sign of a change in trend. There is support around 54 dollars in the medium term. A close below may lead to new selling in the stock.
Volume balance and momentum indicators suggest no clear direction. The stock is overall assessed as technically negative for the medium term.
This stock is listed on Nasdaq, the US, and is traded in dollars.
Investtech's recommendation: Sell

 

 

The analyses are based on closing price as per August 28, 2018.

Skrevet av

Kiran R. Shroff
Analytiker
i Investtech

"Investtech analyserer psykologien i markedet og gir deg konkrete tradingforslag hver dag."

Espen Grønstad
Partner & Senior Advisor - Investtech
 


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Investeringsanbefalingen(e) er utarbeidet av Investtech.com AS ("Investtech"). Investtech garanterer ikke fullstendigheten eller riktigheten av analysen. Eventuell eksponering i henhold til rådene / signalene som fremkommer i analysene står fullt og helt for investors regning og risiko. Investtech er ikke ansvarlig for noe tap, verken direkte eller indirekte, som oppstår som en følge av bruk av Investtechs analyser. Opplysninger om eventuelle interessekonflikter vil alltid fremgå av investeringsanbefalingen. Ytterligere informasjon om Investtechs analyser finnes på informasjonssiden.

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