Australian Hospital Care


Australian Hospital Care

Attached is the weekly chart showing that there may be a possible change in trend occurring now. Notice that since the bottom of 44.5 cents in June this year we have had higher tops and bottoms. Also we had a crossing of the moving averages just one month later in July. Additionally I put an RSI (relative strength index) in there as well to help determine if the stock was changing trend. As you can see the RSI bottomed in April and has since then trended up showing a positive divergence to the stock (ie. RSI trending up whilst stock continuing to trend down or move sideways). This generally tells us that a change in trend is about to take place. Although this is not always a very accurate indicator I have seen and used it with success before. What I like about this stock is the huge upside potential on it. Using the range ($1.38 January '99 to $0.445 June '00) we get a midpoint target of 91.5 cents. Look how this would fall into line with the bottom of 92 cents on October '98. Using the entire range ($2.60 January '97 to $0.445 June '00) midpoint target of $1.52 almost perfectly in line with the bottoms in 1996. Grat to see such targets balancing up with previous highs and lows.

Print This Page
Home ----- Contact Us