Telenor 21.11.2007

Our next stock in our series where we look at stocks recommended by the banks and trading companies we look at TEL. This stock was recommended for buying by DNBNOR today. Their target price is 150 NOK up 26.75 NOK from todays close at 123.25 NOK. For the last couple of weeks the stock has been falling with the rest of the stock market. The high 9th of November was just lower than the highest high price for this stock. From the price chart we see that the stock price is starting to form a falling trendline. This trend is still very weak so we should not pay too much attention to it yet. Like I said the trend is now weak as can be seen from the ADX value. We also see that - DI is gaining momentum at the moment. What we know when we have low ADX values is that oscillators are good indicators to use. RSI is one of these and clearly RSI has been in the overbought area quite recently implying a fall in stock price. The RSI value is still above 50 which is positive but it seems that we are soon to test the RSI support line seen in this chart. If this support line holds still a rise to about 125 - 126 NOK is likely. If the support line fails the stock price can easily fall down to about 116 NOK. The major trend for the stock is still positive and good opportunities for buying can come with falling stock price. But if I was considering this stock for buying I would wait until it touches one of the support lines and confirms them. Or if the stock price break out through the falling resistance line.