Scanning the market for stocks showing strong momentum and SYD (Sydney Airport) came up on the radar

Chris Weston

Pepperstone

Scanning the market for stocks showing strong momentum and SYD (Sydney Airport) came up on the radar. The trend is very strong right now and pullbacks should be seen as a buying opportunity. Not only is the five-day moving average pulling away from the ten-day moving average, however the fact it closed right on the all-time high of a$4.20 is interesting and runs the risk of a double-top. The MACD is firmly above zero and the signal line, again highlighting that pullbacks will be contained within the bullish trend, however the nine-day RSI is at 87, while price is three standard deviations from the twenty-day moving average. So all-in-all the stock is overbought, but is trend follower's dream, so I would buy dips here, however a close today above a$4.20 would be bullish.


Chris Weston
Head of Research
Pepperstone

Highly accomplished financial markets professional, with experience at a number of top-tier global institutions on both the buy and sell-side. A natural communicator with a strong ability to analyse macro-economic trends, capital flows and market...

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