The following stocks, if not from the list above, have been selected due to displaying price action characteristics of interest.
AVEVA Group (LON:AVV) CFD/DFT: This stock continues to show up on our watchlist as it continues to push to new highs. Friday’s bullish engulfing candle suggests a swing low could be in after forming a small flag pattern. However, unlike some equities on Friday, its bullish close was not so extreme that it looks immediately overextended and therefore due some mean reversion. Traders can either seek a break above 4600 or wait to see if a base builds above the 4310 – 4354 region.
Oxford Instruments (LON:OXIG) CFD/DFT: Since hitting a 5.5 year high, we’ve seen a retracement test (yet close above) the 38.2% Fibonacci level with a bullish pinbar. Moreover, the 50-day eMA is acting as support and it’s in the vicinity of the June highs. We therefore suspect the corrective low is in. Bulls could wait for a break of a corrective line or Friday’s high to assume bullish resumption and for a retest of the 1672 high. A close below 1424 places it onto the backburner.
Spirent Communications PLC CFD/DFT: Closing the week at its highest level since 2001 on Friday, we see further upside potential. With three failed attempts to break below 206.50, there’s clearly demand around that level so we remain bullish whilst prices trade above it. We can see that patience would be required here as price action tends to alternative between bullish and bearish frequently, yet the trend is clearly pointing higher.
Royal Dutch (LON:RDSa) CFD/DFT: Prices are on the cup of breaking to new lows. However, as we saw a heavy volume day respect support, it leaves room for a bounce prior to its next breakdown. Bias remains bearish below the 2182.50 high. Whilst a break above this key level doesn’t mean it won’t break to new lows later, it does place it onto the backburner. Whereas a direct break below 2124 assumes bearish continuation.
