TLS is in the zone to continue the long term trend down

TLS – Telstra Corporation Limited

Stock : TLS – Telstra Corporation Limited

Current Price : 4.40

Status : On watch for further weakness and lower highs

TLS has been sold down lower since the last alert and is showing signs of building another move to the lows. We can see that price recently pushed up off the lows at 4.00 to 4.50 where it made a minor double top. From there price then pushed below the minor higher low at 4.40 so we are now watching for a lower high to build and sellers to take control and push price potentially back down to 4.00 or lower to continue the longer term trend down.

 

TLS – Previous Alert 17/2/17

TLS – Telstra Corporation Limited

Current Price : 4.845

Status : On Watch for sell off

TLS was belted yesterday from a report that well and truly under performed. The longer term outlook does not seem inviting to buyers as the competitive advantage that Telstra once had, is on the decline. With more towers erected by Optus and Vodafone along with the mobile space being more competitive, I do not see this changing anytime soon. We expect to see 4.70 under pressure which could take price down to 4.30 if it breaks. Lower highs are holding as sellers pile in on any rally. The key level now is 5.30 then 5.80. We may see 5.30 broken on a rally but expect this to be just contraction to the long term anchor at 5.80 holding the trend down. We will see how this plays out but expect further lows before any relief for the buyers.