#DOW #DAX For some reason, we’ve had a flurry of emails regarding energy company share prices and we’ve opted on SSE to run an analysis against. Something a bit funny appears to be happening across the entire sector. It’s showing the chances of some fairly near term recovery, against a backdrop of the big picture suggesting downward travel.
The immediate suggestion for SSE is of movement above 1111p indicating the potential of coming travel to 1182p. At best, this challenges the downtrend since last year and if above, further oomph toward 1313p becomes possible. But as always, there’s a problem.
Circled on the chart are three price movements, opening second gaps. From Left to Right, they imply the market said “this price should go down”. Then, the next one says, “yes, you recovered but we really want the price down”.
And finally, “Look, stay down. We’ve told you twice already!”
While we’re taking a rather whimsical approach, visually there can be no doubt the market REALLY expects SSE share price to relax. As a result, the big question is to where?
It looks like weakness now below 1000p shall drive the share down to 939p next. If broken, secondary calculates at 894p but we really suspect it shall have difficulty closing a day below 939p. The reason for this is fairly simple – it moves the share price into a region with the big picture demanding reversal to 683p ultimately.
To cut to the chase, our belief is, should SSE Plc reach 939p, it may well prove worth a look to catch any bounce coming.
|
Time Issued |
Market |
Price At Issue |
Short Entry |
Fast Exit |
Slow Exit |
Stop |
Long Entry |
Fast Exit |
Slow Exit |
Stop |
Prior |
|
10:20:36PM |
FTSE |
7230 |
‘cess | ||||||||
|
10:24:05PM |
BRENT |
60.29 |
‘cess | ||||||||
|
10:26:00PM |
GOLD |
1330.94 |
Success | ||||||||
|
10:28:46PM |
FRANCE |
5295.5 |
‘cess | ||||||||
|
10:30:17PM |
GERMANY |
11992.71 |
11926 |
11898 |
11845 |
12017 |
12057 |
12080.5 |
12132 |
11950 |
‘cess |
|
10:34:42PM |
US500 |
2827.62 |
Success | ||||||||
|
10:37:00PM |
DOW |
25549 |
25330 |
25283.5 |
25191 |
25511 |
25561 |
25618.75 |
25765 |
25376 |
‘cess |
|
10:42:47PM |
NASDAQ |
7225.32 |
‘cess | ||||||||
|
10:44:25PM |
JAPAN |
Success |