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Shares RSIs, highs and lows

A regular look at shares trading close to significant levels.

Dunelm Group joins Kingfisher and others on our oversold list this morning, slumping to levels not seen since February. Should the shares drop through 880p, I suspect we could then see a test of November 2013 lows around 830p.

Can maker Rexam has broken through the recent trading range and is now on course to hit 2013 highs. A break through 545p signals a possible move to 570p and then on to the all-time highs just above 600p.

Relative Strength Index (RSI)*

Company

Share Price

Oversold

Company

Share Price

Overbought

Fenner 336.7 23.10 Cairn Energy 205.2

78.71

Carpetright 514 26.11 Heritage Oil 318 75.12
Petropavlovsk 58 27.74 Rexam 541.5 75.10
AZEM-UK 388.75 27.74 Devro

270

74.62
Kenmare Resources 9.86 31.29 3i Infrastructure 138.9 73.60
Dunelm Group

876.5

31.64 Smith & Nephew 1051 72.76
Kingfisher 388.4 31.91 InterContinental Hotels Group 2295 71.73

 

We say hello to Lamprell Group this morning, which is through its October 2013 high and heading towards 180p once more. This makes a nice change to the 52-week high list that is broadly dominated by more defensive companies such as Rexam, Imperial Tobacco and United Utilities.

Highs/Lows**

Company

Share Price

% off 52-week high

Company

Share Price

% off 52-week low

Heritage Oil 318 -0.34% Kenmare Resources 9.86 1.13%
Reckitt Benckiser Group 5115 -0.58% Experian 1033 1.47%
Bunzl 1680 -0.71% Intertek Group 2874 3.08%
Rexam 541.5 -0.73% GlaxoSmithKline

1579.5

3.37%
Lamprell

166.75

-1.19% Carpetright 514 4.26%
Provident Financial 2114 -1.31% International Public Partnerships 129 4.45%
Imperial Tobacco Group 2676 -1.36% Morrison WM Supermarkets 192.8 4.56%
Associated British Foods 3048 -1.39% UBM 652 5.33%
United Utilities Group 867.5 -1.53% Tesco 294.3 5.67%
Reed Elsevier 944 -1.62% Antofagasta 778.5 6.21%

 

*What is a relative strength index?

Relative strength index is a technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset.

An asset is viewed as overbought once the RSI approaches the 70 level, meaning that it may be getting overvalued and is a candidate for a possible pullback. Conversely, if the RSI approaches 30, it is an indication that the asset may be oversold and may become undervalued.

**What is the significance of 52-week highs and lows?

One popular strategy is to buy when shares exceed 52-week highs and sell when they fall below 52-week lows.

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