FTSE350
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Stocks Update
Misys PLC
Misys hit the reduced profit target of 302.0p making a new 52-week high of 339.9p, indicating an uptrend in the stock. MACD (moving average convergence/divergence) is positive and 12 day EMA (exponential moving average) is above 26 day EMA indicating an uptrend in the stock. 14 day RSI (relative strength index) is near 60 showing strength in the trend. 14 day positive DMI (directional moving index) is just above 14 day negative DMI and 14 day ADX (average directional index) is climbing up to 22 indicating uptrend in the stock. All position should be closed for the stock.
Electrocomponents PLC
Electrocomponents is again moving in an uptrend after stock stayed above the support level of 260.0p for last week. MACD is positive and 12 day EMA is still below 26 day EMA indicating consolidation in the stock. 14 day RSI is above 50 supporting a consolidation. 14 day positive DMI is above 14 day negative, while ADX is near 27 indicating consolidation in the stock. The stock has moved above 20 day EMA, another positive sign of an uptrend. Looking at positive momentum in the stock it should be a hold with an improved profit target of 276.0p.
Chemring PLC
On the daily chart, Chemring is in down trend after the stock fall below 2900.0p supported by a dead cross (20 day EMA crossing below 50 day EMA). MACD has turned negative and 12 day EMA is below 26 day EMA, indicating a negative trend in the stock. 14 day RSI is also above 50 indicating weakness in the trend. 14 day positive DMI is below 14 day negative, while ADX is near 17 indicating downtrend. Stock has support near 2850.0p. The stock should be a hold with reduced profit target of 2940.0p.
Tullow Oil PLC
Tullow is in an uptrend after the stock stayed above 1200.0p for the week and made a new high of 1251.0p for the week. MACD turned positive and 12 day EMA is above 26 day EMA supporting the positive trend. 14 day RSI is trading above 60 with a breakout from a negative trendline suggesting strength in the formation of a positive trend. The stock is also above 20 day and 200 day EMA, which supports a positive trend. 14 day positive DMI is above 14 day negative DMI and ADX is at 17 supporting a positive trend. The stock should be a hold with the same profit target.
BATS PLC
BATS is in an uptrend after the stock made higher lows. MACD has turned positive and 12 day EMA has crossed above 26 EMA indicating an uptrend in the stock. 14 day RSI is trading above 60 suggesting strength in the trend supported by trading above the negative trendline, both of which confirms a positive trend in the stock. 14 day positive DMI is above 14 day negative DMI indicating an uptrend in the stock. The stock should be a hold with the same profit target.
ENRC PLC
ENRC stayed above the negative trendline joining its 52-week high of 1276.0p indicating an uptrend in the stock. Momentum oscillator MACD is positive and 12 day EMA is above 26 day EMA indicating an uptrend. RSI is above 60 indicating an uptrend, which is supported with a positive breakout trend in both the indicators. 14 day positive DMI is above 14 day negative DMI, while ADX is at 17 indicating an uptrend is forming in the stock. 20 day EMA is still above 50 day EMA indicating a positive trend in the stock. Stock has to consolidate above 1000.0p for an uptrend and should be a hold with the same profit target.
Aggreko PLC
Aggreko hit the stop loss of 1434.0p in whipsaw making a low of 1409.0p but stock is in positive trend and stayed above 1500.0p for the week. MACD is negative and 12 day EMA has crossed above 26 day EMA indicating the stock is bottoming with a positive trend above a strong support of 1500.0p. 14 day RSI is above 50 indicating bottoming in the stock. The stock price is also above 20 and 50 day EMA confirming the short-term positive trend in the stock. 14 day negative DMI is above 14 day positive DMI and 14 day ADX is at 16 indicating a consolidation. All position should be closed for the stock.
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This report has been issued by CSS Partners LLP (“CSS Partners”). CSS Partners is an appointed representative of Charles Street Securities Europe LLP (“CSS”) which is authorised and regulated by the Financial Services Authority in the UK. It constitutes non-independent “investment research” as contemplated by the FSA Rules and is thus considered a marketing communication. This report was prepared by Kuldeep Bhati who is employed as an analyst at CSS Partners and as such does not conform with the FSA definition of independent investment research and as such is not subject to the rule of not dealing ahead of distribution of the marketing communication and was not prepared in line with the legal requirements for independent communication.
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Regulatory disclosures
In accordance with the Conduct of Business Rules COBS12.4.7R (i) in the preparation of the report the analyst used price and volume charts provided by independent data suppliers and applied technical analysis tools of investment and trading evaluation in arriving at his recommendations, ii) all recommendations made by the analyst are followed up in subsequent reports until the closure of a position, iii) there is no certainty that any recommendation will be successful or that technical analysis should be used exclusively to arrive at investment decisions.
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Distribution of recommendations for the period 1st July to 30th September 2010:
| % Distribution of recommendations | No of recommendation | |
| Buy | 87.5% | 21 |
| Hold | 0 | 0 |
| Sell | 12.5% | 3 |
The first column displays the % distribution of recommendations made by CSS Partners in this Technical Analysis Trading programme and the second column shows the numbers of such recommendation. Neither CSS nor CSS Partners has any investment banking relationships with any of the companies covered in the Technical Analysis Trading Programme, namely the companies in the FTSE 350 index.
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