Australian Hospital Care
Attached is the weekly chart showing that there may be a possible change in
trend occurring now. Notice that since the bottom of 44.5 cents in June
this year we have had higher tops and bottoms. Also we had a crossing of
the moving averages just one month later in July. Additionally I put an RSI
(relative strength index) in there as well to help determine if the stock
was changing trend. As you can see the RSI bottomed in April and has since
then trended up showing a positive divergence to the stock (ie. RSI
trending up whilst stock continuing to trend down or move sideways). This
generally tells us that a change in trend is about to take place. Although
this is not always a very accurate indicator I have seen and used it with
success before. What I like about this stock is the huge upside potential
on it. Using the range ($1.38 January '99 to $0.445 June '00) we get a
midpoint target of 91.5 cents. Look how this would fall into line with the
bottom of 92 cents on October '98. Using the entire range ($2.60 January
'97 to $0.445 June '00) midpoint target of $1.52 almost perfectly in line
with the bottoms in 1996. Grat to see such targets balancing up with
previous highs and lows.
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