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Standard Chartered PLC Monthly Chart

After a long period negativity for UK FTSE share Standard Chartered – STAN – times look like they might be changing. Typically I post weekly charts to show my thoughts but today I’d thought I’d share the monthly chart.

Swimmer facts:
  • Monthly break out of price trend
  • Long term MACD broken above Zero line
  • Short term MACD test Zero line and recovered

So using the monthly chart in conjunction with the weekly chart is always a good thing to do when it comes to investing as the long term chart will give you a good idea of the short term direction of any stock.

Looking at STAN I identified them as being a swimmer (Buy) when I saw how the monthly fact stacked up. First of all by drawing a trend line between the high of March 13 and now its easy to spot how the current month appears to have broken a trend line.

Then as a second indicator of a trend break I looked for strength in the MACDs and they both show strength. The short term MACD shows how the zero line was put to the test recently but the share came out on top and is pushing higher.

Finally, the long term MACD shows a reversal to the upside of the trend and pushed passed the 0 line into positive territory giving me enough reason to buy this share as a spread bet.

Let me know your thoughts, I’d love to know if you agree.

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