Which way will it go?
Page 8 of 8
Telstra Corp (TLS)
Technical Recommendation: Hold
(Click here for TLS fundamental research and company information)
The resistance for TLS, which was the June 2010 and February 2012 highs, was nowhere near as onerous as the resistance faced by the other stocks reviewed this week. But it was a barrier, and it has been overcome.
That is a positive development.
And, in contrast to the other stocks, momentum indicators are relatively supportive, with the weekly stochastic back in Buy mode.
Given the break above resistance, TLS is upgraded to Accumulate this week.
The initial target is the upper limits of the trend channel emanating from the March 2011 lows, which, at this stage, sits at approximately $3.75
A break below $3.45 would slow upside progress; that is the stop-loss level.
(click image to enlarge)