Nenix's Take on Olam
Conclusion
Labels:
Author - Nenix,
Picks - Nenix,
Singapore Stocks,
Stock - Olam
Olam, from the trend is showing weaknesses in its strength despite positive trending. Various indicators are pointing towards a weakening trend with correction. However, as my system is based on trend direction, and not prediction, I have to enter a position. However, I wil be monitoring this counter closely as I think this will be the first counter that will hit the exit criteria.
Trend Direction
Although the trend direction is in an upward motion, the crossover seems weak.
Trend Strength
Trend strength also points to weakness in the trend. The +DI is going down signifying that the strength of the uptrend is weakening. The -DI is showing an increasing trend, indicating a selling pressure. However, as both lines are in the region of 20, it can be said that both strengths are weak in nature.
ATR
ATR has decreased significantly since its low of $0.835, indicating stability in prices.
Momentum
Momentum is currently weakening although generally it is still on an increasing momentum, indicating that the buying interest has waned.
Volume
Volume is in tandem with price direction and this is a characteristic of an increasing trend.
All indicators are pointing to a weak uptrend. However, the decision to enter is due to the fact that it is in an uptrend. Unless I have more screening criteria, I just have to live with it. What I can do is to maybe add more criteria but I feel that it would only make things more subjective, which I do not favor.
If I have to rate this stock, it would be classified as a "weak uptrend stock"
Reproduced with permission from http://nenixdreams.blogspot.com
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