Sydney (SYDNEY.NDX)

Short term

Sydney is within an approximate horizontal trend channel in the short term. This indicates that investors are uncertain and waiting for signals of further direction. A break upwards will be a positive signal, while a break downwards will be a negative signal. The index has support at points 7970 and resistance at points 8230. The index is assessed as technically neutral for the short term.

Recommendation one to six weeks: Hold

Medium term

Sydney has broken through the floor of a rising trend channel in the medium long term. This indicates a slower rising rate at first, or the start of a more horizontal development. The index gave a negative signal from the double top formation by the break down through the support at 8317. Further fall to 7902 or lower is signaled. The index is testing resistance at points 8140. This could give a negative reaction, but an upward breakthrough of points 8140 means a positive signal. RSI is below 30 after the falling prices of the past weeks. The index has strong negative momentum and further decline is indicated. However, particularly in big stocks, low RSI may be a sign that the stock is oversold and that there is a chance for a reaction upwards. The index is overall assessed as technically slightly negative for the medium long term.

Recommendation one to six months: Weak Negative

Long term

Sydney has broken through the floor of a rising trend channel in the long term. This indicates a slower rising rate at first, or the start of a more horizontal development. The index gave a negative signal from the double top formation by the break down through the support at 8317. Further fall to 7902 or lower is signaled. The index is approaching support at 7800 points, which may give a positive reaction. However, a break downwards through 7800 points will be a negative signal. Trading volume has increased substantially lately. This shows there is an increased interest for the index, possibly because of fundamental news. The RSI curve shows a falling trend, which could be an early signal of the start of a falling trend for the price as well. The index is overall assessed as technically slightly positive for the long term.

Recommendation one to six quarters: Weak Positive