Technical outlook – Approaching this share from a technical perspective, it is assessed from the daily time frame that bullish divergence is evident.
Traders can take advantage of divergence by using a variety of trend-based strategies.
Divergence is probably one of the most popular 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 a significant 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, posting a higher high.
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.
Combining the above assessment, NRW Holdings Limited (NWH) is in a prime position to stage a rebound or possibly a bull-run from the current level and look towards the region of $3.30. Reassess from there.
Company Overview – NRW Holdings Limited (NWH) is an Australian Company which provides diversified services to the resources, civil infrastructure and urban development sectors. NRW has structured its business reporting into four segments, Civil, Mining, Drill, Blast and Mining Technologies.