Crown finding a short term high

by Michael Gable 11 September 2012

Crown is showing signs of peaking up at these levels. After falling sharply in May, the stock then required 3 months to attempt a rally back up to the May high. Volume was also low on the way up which is not a good sign. While CWN made its final move up last week to go to a new high, we can see divergence on the RSI and then a large sell-off yesterday. This indicates an obvious rejection from these higher levels. The most likely scenario here is a pull back to the June low close to $8. The stock goes ex-divided on 24 September for 19c so this may also contribute to seeing the share price down at those levels. Those looking at CWN to gain exposure to the Asian discretionary dollar should therefore wait for cheaper levels before buying the stock.

Disclaimer

Disclaimer: Michael Gable is an Authorised Representative (No. 376892) and Fairmont Equities is a Corporate Authorised Representative (No. 444397) of Novus Capital Limited (AFS Licence No. 238168). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.
 

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