Short Term Commentary: Kimberley Diamond Company NL [Friday 8...

Short Term Commentary:
Kimberley Diamond Company NL [Friday 8 Dec. 2006]:
Weak Buy Candidate ( 3.50)

Kimberley Diamond Company NL is up by 1.14% yesterday from AUD 0.88 to AUD 0.89. The price has been going up and down in this period, and there has been a 1.14% for the last 2 weeks. Volume fell last day by -0,89 million shares and in total there was bought and sold 1,99 million shares for approx. AUD 1,77 million. You should note that falling volume on higher prices causes divergence and may be an early warning about possible changes for the next couple of days.

3 Month Trend
Kimberley Diamond Company NL lays in the middle of a very wide and weak falling trend on short term and further fall within the trend is signalized. Given the current short term trend the stock is expected to fall -7.5% during the next 3 months and with 90% probability hold a price between AUD 0.75 and AUD 1.02 at the end of this period.

Signals
A buy signal was issued from a pivot bottom point at Fri. 01 December 2006 and this indicates further gains until a new top pivot has been found. Some negative signals issued as well, and these may have some influence on the very short term development. Kimberley Diamond Company NL holds a buysignal from the short term moving average, but at the same time a salessignal from the long term average. Since the longterm average is above the short term average there is a general salessignal in the stock. On further gains Kimberley Diamond Company NL will meet resistance from the long moving average at AUD 1.02. On fall the stock will find some support from the short term average at AUD 0.85. A break up through the long term average will give another buysignal, while a fall bellow the short term average will add another salessignal and strengthen the general signal. Volume fell last trading day while the share price increased. This causes a divergence and may be considered as an early warning, but don't have to be.

Relative Strenght Index (RSI)
RSI14 is 42 and the stock are not being overbought or oversold.

Support And Resistance
Kimberley Diamond Company NL finds support from accumulated volume at AUD 0.83, AUD 0.82 and AUD 0.81 On the upside the stock meets some resistance just above today's level from accumulated volume at AUD 0.90, AUD 0.93 and AUD 1.04.

The stock is about to test the resistance from accumlated volume at AUD 0.90 and this may cause the stock to take a minor break or get into a more sidewise move for a few days.

Risk
This stock may move much during a day (volatility) and with periodic low trading volume this stock is considered to be "high risk". Last day they the stock moved AUD 0.02 between high and low and this equals 2.27%. For the last week the stock has had an daily average volatility of 3.78%.



Our evaluation
Several short term signals are positive and despite the stock being in a weak falling trend we conclude that current level may hold a buying opportunity as there is a fair chance for this stock to perform well in the short term.

Our short term conclussion: Weak Buy Candidate.

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