Shares RSIs, highs and lows

A regular look at shares trading close to significant levels.

Carpetright shares are slumping once again and now heading towards 520p, the low from the beginning of February. If this is lost we would then be looking at a test of 495p, the lowest level since the beginning of 2012. SThree, having dropped through 370p, is now moving in the direction of 346p, as investor sentiment turns negative.

Meanwhile SABMiller is enjoying renewed fizz in its share price following its results. Selling has crept back in this morning but £33 looks now to be a major support level. 

 

Relative Strength Index (RSI)*

Company

Share Price

Oversold

Company

Share Price

Overbought

Lancashire Holdings Ltd 617.5 22.08 United Utilities Group 842

76.77

SuperGroup 985.5 24.95 Severn Trent 1925 76.48
Carpetright 535 24.96 Heritage Oil 315.2 73.62
SThree 363.75 25.47 SABMiller

3331

72.25
Drax Group 605.5 25.60 InterContinental Hotels Group 2221 72.17
Intermediate Capital Group

399.7

25.82 National Grid 879 71.44
Dairy Crest Group 434.4 26.14 Compass Group 995 71.01

 

For BP, the £5-£5.10 region has been a major barrier since the beginning of 2011, so if the shares move higher then this region should be closely watched.

Highs/Lows**

Company

Share Price

% off 52-week high

Company

Share Price

% off 52-week low

InterContinental Hotels Group 2221 -0.49% Experian 1021 0.29%
Reed Elsevier 931 -0.75% Intertek Group 2859 2.55%
BP 506.9 -0.82% Dairy Crest Group 434.4 2.77%
Heritage Oil PLC 315.2 -0.85% Dignity

1364

4.36%
Bunzl

1677

-0.89% International Public Partnerships 130 5.26%
Pennon Group 773 -1.53% UBM 654 5.65%
National Grid 879 -1.68% GlaxoSmithKline 1616.5 5.79%
Imperial Tobacco Group 2666 -1.73% William Hill 334.1 6.20%
Smith & Nephew 945 -1.97% [shares:MGGT-UK|Meggitt 473 6.29%
Royal Dutch Shell 2357.5 -1.98% Rolls-Royce Holdings 1001 6.49%

 

*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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