Sunningdale near all-time over bought level (12 Apr 16)

Sunningdale has appreciated approximately 59% from $0.810 on 19 Feb 2016 to $1.290 on 12 Apr 2016 which is more than a five-year high price level. Based on Chart 1 below, Sunningdale seems to have formed a spinning top on 12 Apr 2016. This may indicate indecision / weakness among the bulls after an extended advance. RSI is at, or near an all-time overbought level at 89.5. MACD (being slower to react) is near multi-year overbought levels. ADX is at typically unsustainable high levels above 80. In view of the above, Sunningdale may consolidate its recent hefty gains in the near term.

Near term supports: $1.250 / 1.225 / 1.200

Near term resistances: $1.300 / 1.350 / 1.400

Chart 1: Sunningdale surged 59% since 19 Feb 2016

Sunningdale chart 12 Apr 16

Source: Shareinvestor

P.S: This email was first sent out this morning to my clients when Sunningdale was trading at $1.330 with an RSI of 91.0.

 

Disclaimer

Please refer to the disclaimer here

Leave a Reply

Your email address will not be published. Required fields are marked *