WLS - Wilson Leaders

[andrew_c2o]

What can anyone make of this? The moving average is crossing over. I can see the RSI was diverging from April 18th to June 27th, so the trend up looks promising. I think it might be a good longer term buy

 

[ob1kenobi]

Re: WLS going up?

What can anyone make of this? The moving average is crossing over. I can see the RSI was diverging from April 18th to June 27th, so the trend up looks promising. I think it might be a good longer term buy

I think the data needs some context. The danger with charts such as the RSI is that they are based on historical data, not the events that necessarilly happened today, so be cautious. For that reason, I like to put such charts against the backdrop of the price chart. Your chart seems to run out of steam in the volume area. People are not buying, why? I looked at the most recent chart (1 year) for WLS and I would want to know answers to the following:

A) Why has there been such a dramatic fall in the price?
B) There has been a return of some obvious volume, however they seem to be the traders that are selling, as the RSI chart suggests the stock is being oversold. Why?
C) The charts do show signs of traders entering the market to buy this stock. Given how cheap it is, is it likely that they are buying only to sell at the next peak (profit takers)? If so, could this see the chart trade sideways?

The recent chart is attached. These are merely my questions and my opinions.

 

[So_Cynical]

As of mid 2007, Wilson Leaders (WLS) has changed its name and its ASX code to Australian leaders Fund (ALF). As such a new thread has been created and the discussion has been moved there: https://www.aussiestockforums.com/forums/showthread.php?t=23372&p=655258