morning report sounds good, page-3

the following mornington star SDL report, could only copy words not graph,
Australian resource stocks look promising

Lesley Beath | 17 Jan 2012Text size |




http://www.morningstar.com.au/technicalanalysis.mvc/article/australian-resource-stocks-look-promising/4341/6




inShare.








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Sundance Resources (SDL)




Technical Recommendation: Buy


Stop/Loss: $0.36


(Click here for SDL fundamental research and company information)

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Technical View

SDL differs from most resource stocks, in that the broad upward path from the 2008 low remains intact.

The corrective phase that commenced in early 2011 has been marked by some very wide price swings and, going forward, there is scope for more of the same (price halved between January and June, and then rose by 80% into the July).

But the December low appears to be significant and with a Buy signal on the stochastic, risk is to the upside.

The stock has already advanced by 24% since December, and is fast approaching the January 2011 downtrend. This currently sits at $0.44 and that could be a short-term stumbling block. If price can break above there, it opens upside toward $0.54.

SDL is Speculative and not for conservative investors, but it does show an improving profile, along with a number of other small resource stocks.

It is rated as a Speculative Buy.

The stop-loss level is $0.36.