| WorleyParsons: the upside prevails |
9.1 is our pivot point.
Our preference: as long as 9.1 remains support we favour the upside.
Alternative scenario: below 9.1 expect a drop to 8.5 and 6.85.
Comment: WorleyParsons has continued its bullish move towards 12.
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| Green Lines Represent Resistance | Red Represent Support Levels | Light Blue is a Pivot Point | Black represents the price when the report was produced |
| In order to leverage this directional view we have selected the following product |
| ASX Code | Type | Strike | Stop Loss
Trigger Level | Required Number | Current
Share Price | Gearing | Approx
Value | % from
Stop Loss | |
| WORKOD | MINI Long | 6.88 | 7.54 | 1 | 10.38 | 66.25% | $3.5 | 27.36% |
Legend
MA (50) & MA (20): The most simple trend indicators are Moving Averages. They simply correspond to an average calculated on an evolving time scale (20 and 50 periods): every day, the oldest value (often taken at the close) in the average calculus is replaced by the value of the new session.
Bollinger bands: are represented by 3 different bands and are derived from moving averages. The middle band corresponds to a simple moving average (MA (20)). The level of the upper band, in every point, corresponds to the sum of the level of the middle band and twice the value of the standard deviation associated to the 20-day moving average. Reciprocally, the level of the lower band corresponds to the level of the middle band diminished by twice the value of the standard deviation associated to the 20-day moving average. An envelop of the future price is thus determined. This makes it possible to then identify the variation margin in which the future should stay almost systematically. In the case of a future following a Gauss law, 95 % of the trades will thus occur between these bands.
RSI (14): the Relative Strength Index aims at establishing a reference scale independently from the future price levels themselves. As the RSI has boundaries (0 and 100), it then becomes very easy to determine overbought (above 70) and oversold (below 30) areas. In addition, just as on prices themselves, supports and resistances can appear, especially when nearing the neutrality zone (near 50). Thus, the RSI is one of the most commonly used counter-trend indicators.
It is based on the average of rises and drops of price, with the formula:
RSI = 100 - [100 / (1 + RS)]
Where RS represents the average of up closes divided by the average of down closes on the considered period (14).
By "Invalidation level" we at TRADING Central mean a pivotal point, a key technical level - analogous to a trading stop loss level. It is synonymous to "key technical level" - it can be anything from a Fibonacci projection to a gap, etc. Actually, there is no one-way for calculating an invalidation level. We favour the use of Fibonacci levels (either via a retracement or a projection), along with classical technical levels (gaps, horizontal lines, etc.). The choice will depend on the current market configuration. A break through our invalidation level would invalidate our forecast, mentioned as "Our Preference" and trigger the "Alternative scenario".
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