Technical outlook – Charter Hall Group (CHC) share price is expected to experience renewed bearish pressure this week, since rejecting the all-time high $12.97. Also, not helping matters is the evidence of bearish divergence.
Divergence is probably one of my favourite trading signals because they are dynamic and most often offer a reliable, high-quality trading signal reversal when combined with other trading tools and concepts.
In technical analysis, divergence can be an important warning signal that a bullish or bearish trend is coming near to an end.
Divergence appears when a technical indicator (oscillator) begins to establish a trend that disagrees with the actual price movement. These “disagreements” are strong signals and somewhat useful for the trader/investor.
Bullish divergence occurs when the price of an asset makes a new low while the indicator starts to climb.
Bearish divergence happens when the price of the asset reaches a new high, but the indicator fails to do the same and instead closes lower than the previous high.
It is in our assessment that the market will slip away from the all-time highs and slip back to the break of the bull-run viewed from $12.00-10. Reassess from there.
Company Overview – Charter Hall Group (CHC) is a property fund manager and developer managing a suite of institutional, wholesale and retail unlisted property funds in which it holds investments.
The funds are diversified across the office, retail, industrial and residential sectors.
CHC has offices in Sydney, Melbourne, Brisbane, Adelaide, and Perth. CHC’s business comprises two divisions, namely property investments, and property funds management.