Telstra Corporation Ltd (TLS.AX) Chaikin Money Flow Showing Positive Signs

Telstra Corporation Ltd (TLS.AX) shares are showing bullish signs as the Chaikin Money Flow or CFI is above the zero line. A positive Chaikin Money …
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Telstra Corporation Ltd (TLS.AX) shares are showing bullish signs as the Chaikin Money Flow or CFI is above the zero line. A positive Chaikin Money Flow indicates that the stock is strong while a negative CMF indicates that the stock is weak. The CMF indicator passing through the zero line (rising above or falling below) may indicate a shift in the overall trend for the equity. The indicator, created by Marc Chaikin, is based on the theory that the strength of the market can be determined by looking at where the price closes compared to its daily range and volume. If the market is strong you will see if closing in the upper half with a high volume. A weak market can be seen if it closes in the lower half of the range on high volume.

Taking a deeper dive into the numbers, Telstra Corporation Ltd (TLS.AX) has a 50-day Moving Average of 3.29, the 200-day Moving Average is 3.10, and the 7-day is noted at 3.36. A popular tool among technical stock analysts is the moving average. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a specific period of time. Moving averages can be very useful for identifying peaks and troughs. They may also be used to help the trader figure out proper support and resistance levels for the stock.

Stock analysis typically falls into two main categories. Some investors may prefer technical analysis, and others may prefer to study the fundamentals. Many investors will keep an eye on both. Technical analysis involves trying to project future stock price movements based on prior stock activity. Technicians strive to identify chart patterns and study other historical price and volume data. Technical investors look to identify trends when assessing a stock. The trend is typically considered to be the main direction of the share price. Trends are generally categorized as either up, down, or sideways. If a bullish trend is spotted, the trader may expect the upward trend to continue and thus try to capitalize on further upward action.

Traders may be relying in part on technical stock analysis. Telstra Corporation Ltd (TLS.AX) currently has a 14-day Commodity Channel Index (CCI) of 12.38. Despite the name, CCI can be used on other investment tools such as stocks. The CCI was designed to typically stay within the reading of -100 to +100. Traders may use the indicator to determine stock trends or to identify overbought/oversold conditions. A CCI reading above +100 would imply that the stock is overbought and possibly ready for a correction. On the other hand, a reading of -100 would imply that the stock is oversold and possibly set for a rally.

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At the time of writing, the 14-day ADX for Telstra Corporation Ltd (TLS.AX) is 24.56. Many technical chart analysts believe that an ADX value over 25 would suggest a strong trend. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal. The ADX is typically plotted along with two other directional movement indicator lines, the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI). Some analysts believe that the ADX is one of the best trend strength indicators available.

The Relative Strength Index (RSI) is one of multiple popular technical indicators created by J. Welles Wilder. Wilder introduced RSI in his book “New Concepts in Technical Trading Systems” which was published in 1978. RSI measures the magnitude and velocity of directional price movements. The data is represented graphically by fluctuating between a value of 0 and 100. The indicator is computed by using the average losses and gains of a stock over a certain time period. RSI can be used to help spot overbought or oversold conditions. An RSI reading over 70 would be considered overbought, and a reading under 30 would indicate oversold conditions. A level of 50 would indicate neutral market momentum. The 14-day RSI is currently sitting at 55.97, the 7-day is at 55.78, and the 3-day is spotted at 62.31 for Telstra Corporation Ltd (TLS.AX).

When conducting stock analysis, investors have a wide array of various classifications to choose from. Growth stocks generally have the potential to produce above average profit growth and revenues. These types of stocks tend to expand quicker than the economy as a whole. Investors also have the option of adding cyclical stocks to the portfolio. Cyclicals are generally companies whose earnings and sales are highly correlated with that of the overall economy. When the economy is doing well, cyclical stocks may be more in favor. Investors may decide to go in another direction when the economy is dragging. When an economic downturn is underway, investors may choose to select defensive stocks. These types of stocks generally stand up well during down periods based on their insulation from the business cycle. Investors also have the option of purchasing foreign stocks to help add some diversity to the portfolio.

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Will Telstra (TLS) Follow NAB To Cut Its Dividend… Again?

Could Telstra Corporation Ltd (ASX: TLS) shareholders await the same fate as National Australia Bank Ltd (ASX: NAB) investors? With interest rates at …

Could Telstra Corporation Ltd (ASX: TLS) shareholders await the same fate as National Australia Bank Ltd (ASX: NAB) investors?

With interest rates at record lows, the possibility of a further RBA rate cut and the Labor party promising to end excess franking credit cash refunds if they win the federal election, it’s no wonder why investors feel they have enough to worry about without being whacked by a dividend cut.

Investors in National Australia Bank were handed a reduced dividend last week.

The Appeal Of Dividend Yield In 2019

To different investors, but especially retirees or those who invest for a passive income, a juicy and reliable dividend is very appealing when interest rates on term deposits are hovering around 2.5%. Since interest from a term deposit is subject to income tax, many investors will be lucky to receive a 2% return on their money after tax — barely enough to keep up with inflation!

For years, Telstra reliably and consistently paid a dividend of at least 28 cents per share (cps) — 40cps grossed up with franking credits. That’s why it has been a retiree portfolio favourite for over a decade.

It also explains how, despite relatively benign profit growth, Australian investors were able to push Telstra’s share price to a high of around ~$6.60 over the last 5 years. With the Telstra share price around ~$3.30 right now, it’s a far cry from its 5-year high and looks unlikely to return there anytime soon.

A Cut To Telstra’s Dividends?

Investors probably see few better dividend alternatives than Telstra.

Maybe they think that since Telstra have already cut their dividends, they won’t cut it any further? Or maybe they are even hoping Telstra will raise its dividend again in the near future?

Telstra paid 22cps in dividends last financial year and CEO Andy Penn is on record as saying Telstra will target a payout ratio of 70-90% of the year’s profit. Analysts surveyed by WSJ have a profit estimate set for Telstra at 20cps. If analysts are correct it might be reasonable for investors to expect a total dividend of 14-18cps in FY2019.

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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).

Disclosure: at the time of writing, Andrew does not own any shares in the companies mentioned.

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Shares in Focus: Watching the Numbers for Telstra Corporation Ltd (TLS.AX)

Following recent share price movement on shares of Telstra Corporation Ltd (TLS.AX), we have seen that shares are now trading under the Chikou …

Following recent share price movement on shares of Telstra Corporation Ltd (TLS.AX), we have seen that shares are now trading under the Chikou line. Traders might be tracking future price action to determine possible downward momentum if the price remains below the signal.

Making ones way through the equity markets can be highly challenging. Investors might be reviewing strategies to see what has worked and what hasn’t worked in the past. After studying the broader economic factors that impact equity markets, it may be time to focus in on specific stocks to add to the portfolio. Investors may examine different sectors first in order to figure out where the majority of the growth potential lies. Doing all the necessary research on sectors can help pinpoint where the next major trend will be forming. This study may not lead to exact findings, but it may provide a better framework with which to operate moving forward in the stock market. Finding those big winners can take a lot of time and effort. Digging through the numbers may be cumbersome at times, but the rewards for sticking with it and putting in the work may pay off greatly down the line. Staying on top of economic news and the fundamentals of stocks in the portfolio on a consistent basis can help the investor better traverse the often rocky terrain that is the stock market.

Currently, the 14-day ADX for Telstra Corporation Ltd (TLS.AX) is sitting at 26.18. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would support a strong trend. A value of 50-75 would identify a very strong trend, and a value of 75-100 would lead to an extremely strong trend. ADX is used to gauge trend strength but not trend direction. Traders often add the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of a trend.

Investors may be looking to compare the current stock price of Telstra Corporation Ltd (TLS.AX) to some of its moving averages. After a recent check, the 200-day MA is resting at 3.10, and the 50-day is 3.28. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a specific period of time. Moving averages can be very useful for identifying peaks and troughs. They may also be used to help the trader figure out proper support and resistance levels for the stock.

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Technical analysts have been monitoring shares of Telstra Corporation Ltd (TLS.AX) as of late. The Relative Strength Index (RSI) is one of multiple popular technical indicators created by J. Welles Wilder. Wilder introduced RSI in his book “New Concepts in Technical Trading Systems” which was published in 1978. RSI measures the magnitude and velocity of directional price movements. The data is represented graphically by fluctuating between a value of 0 and 100. The indicator is computed by using the average losses and gains of a stock over a certain time period. RSI can be used to help spot overbought or oversold conditions. An RSI reading over 70 would be considered overbought, and a reading under 30 would indicate oversold conditions. A level of 50 would indicate neutral market momentum. Presently, the 14-day RSI is standing at 57.55, the 7-day is 55.92, and the 3-day is resting at 57.18.

Taking a look at the numbers, Telstra Corporation Ltd (TLS.AX) has a 14-day Commodity Channel Index (CCI) of 29.78. The CCI technical indicator can be used to help determine if a stock is overbought or oversold. CCI may also be used to help discover divergences that could possibly signal reversal moves. A CCI closer to +100 may provide an overbought signal, and a CCI near -100 may offer an oversold signal.

The amount of financial information available to individual investors these days is staggering. Accumulating intelligence in the stock market is much easier to do than ever before. All the advances in technology have allowed regular investors to access information with relative ease. Making sense of all the various data can be overwhelming, but plowing through the data may create a solid foundation to start enhancing profits in the market. With so many investing options, traders and investors need to construct a plan that works specifically for them. Becoming educated about the stock market before tackling the beast might assist the individual investor in many ways. Studying how markets and prices move may help the investor decide which way is the best way to go. Understanding the difficulties and possible pitfalls that investors generally fall prey to, can go a long way in helping even before the first trade is ever made. As most investors know, the markets and economic landscapes are constantly changing. This requires the investor to be in tip top mental shape in order to confront tough buy or sell decisions when the time comes.

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What Do The Technicals Boil Down To For Telstra Corporation Ltd (TLS.AX)?

Telstra Corporation Ltd (TLS.AX)’s MACD Histogram reading is currently below the zero line, indicating a neutral or negative chart trend for the shares.

Telstra Corporation Ltd (TLS.AX)’s MACD Histogram reading is currently below the zero line, indicating a neutral or negative chart trend for the shares. Shares recently touched 3.38 on a recent bid, moving 0.02 in the most recent session.

Created by Thomas Aspray in 1986, the MACD Histogram is a visual indicator of the difference between the MACD line and the Signal line, which is a default 9 period ema of the MACD line. The histogram is an oscillator that moves above and below the zero line, just as the MACD line does. Keep in mind when using this oscillator, that it takes four mathematical steps from price itself to create the 4th derivative, the histogram: Price => two ema averages => MACD line = Signal line => Histogram. Which means it lags price quite a bit. But like all derivatives of price, it’s much smoother than price itself.

If the MACD is above zero it helps confirm an uptrend; below zero and it helps confirm a downtrend. Zero line and Signal line crossovers are used as trade signals to enter and exit trending trades. Losing trade signals occur when crossovers occur in rapid succession due to choppy price action. Divergence shows when momentum is slowing, but it doesn’t indicate when a reversal will occur (if it occurs). Combing different elements of each strategy makes the indicator more useful, such as taking buy signals following a bullish divergence. Using price and trend analysis will aid in determining which signals to take, such as only taking buy signals when a long-term uptrend is in place.

As we move closer to the close of the year, investors will be closely watching the next round of company earnings results. Investors may choose to closely follow Wall Street analyst projections around earnings periods. Analysts will typically make adjustments to estimates as the earnings date approaches. Many investors will look to see which way the estimate revisions are trending heading into the earnings report. Once the release is published, analysts have the ability to make further updates based on actual information that the company provides.

Additionally investors may want to examine some alternative technical indicators when studying a stock. Currently, the 14-day Commodity Channel Index (CCI) for Telstra Corporation Ltd (TLS.AX) is sitting at 27.09. CCI is an indicator used in technical analysis that was designed by Donald Lambert. Although it was originally intended for commodity traders to help identify the start and finish of market trends, it is frequently used to analyze stocks as well. A CCI reading closer to +100 may indicate more buying (possibly overbought) and a reading closer to -100 may indicate more selling (possibly oversold).

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The 14-day ADX for Telstra Corporation Ltd (TLS.AX) is currently sitting at 27.44. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of 50-75 would signal a very strong trend, and a value of 75-100 would indicate an extremely strong trend. The ADX is a technical indicator developed by J. Welles Wilder used to determine the strength of a trend. The ADX is often used along with the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI) to identify the direction of the trend.

Moving average indicators are used widely for stock analysis. Many traders will use a combination of moving averages with different time frames to help review stock trend direction. One of the more popular combinations is to use the 50-day and 200-day moving averages. Investors may use the 200-day MA to help smooth out the data a get a clearer long-term picture. They may look to the 50-day or 20-day to get a better grasp of what is going on with the stock in the near-term. Narrowing in on Moving Averages, the 200-day for Telstra Corporation Ltd (TLS.AX) is at 3.09, the 50-day is 3.28, and the 7-day is resting at 3.38. The RSI is computed based on the speed and direction of a stock’s price movement. The RSI is considered to be an internal strength indicator, not to be confused with relative strength which is compared to other stocks and indices. The RSI value will always move between 0 and 100. One of the most popular time frames using RSI is the 14-day. The 14-day RSI is presently standing at 58.33, the 7-day sits at 56.55, and the 3-day is resting at 54.23.

Investors may be watching other technical indicators such as the Williams Percent Range or Williams %R. The Williams %R is a momentum indicator that helps measure oversold and overbought levels. This indicator compares the closing price of a stock in relation to the highs and lows over a certain time period. A common look back period is 14 days. Telstra Corporation Ltd (TLS.AX)’s Williams %R presently stands at -42.11. The Williams %R oscillates in a range from 0 to -100. A reading between 0 and -20 would indicate an overbought situation. A reading from -80 to -100 would indicate an oversold situation.

Successful stock market investing often begins with setting up measureable and viable goals. Investors who set attainable goals and craft a plan to achieve those goals may find themselves in a much better position than the investor who does not. It can be very tempting to jump into the stock market and start investing. When the market is riding high, investors may be quick to act so they do not miss out on the action. Entering the stock market without a plan can lead to future distress when the markets turn downward for an extended period of time. Having a plan for multiple scenarios can help the investor ride out the storm when it comes.

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Telstra (ASX:TLS) Secretly Plans To Use Property To Make $1.5 Billion

Telstra Corporation Ltd (ASX: TLS) has a secret plan to create $1.5 billion of value for shareholders by using property. Telstra is our country’s oldest …

Telstra Corporation Ltd (ASX: TLS) has a secret plan to create $1.5 billion of value for shareholders by using property.

Telstra is our country’s oldest telecommunications business, having built the first telegraph line in 1854. In 2019, it provides more than 17 million retail mobile services, around 5 million retail fixed voice services (e.g. home phones) and 3.6 million broadband services. Telstra also has operations in eHealth, network applications and subsea cabling. In 1997 (until 2006), the Government sold Telstra to Australian investors by listing the shares on the ASX. The second batch of Government share sales, called “T2”, was conducted in 1999 at $7.40 per share.

The Secret Telstra Property Plan

Telstra owns a nationwide network of telecommunication exchange properties, but it is looking to create an unlisted property trust and sell 49% of that trust to real estate investors, according to the Australian Financial Review’s Street Talk.

If Telstra can find a buyer, or buyers, for the stake then it could raise up to $1.5 billion for the telco.

There are 37 of these telecommunication exchange properties that would be included in the trust, all of them are based either in capital cities or large population hubs.

Street Talk revealed that the property portfolio would have a weighted average lease expiry (WALE) of 21 years. Telstra would still be responsible for all of the ongoing expenses, repairs, maintenance and capital expenditure.

If the trust were to be created, there would be multiple options for lease extensions. Two of the potential real estate investors that UBS, Telstra’s adviser, has approached are Charter Hall Group (ASX: CHC) and ISPT (a property investor operated by multiple industry funds like AustralianSuper, Cbus and HESTA).

UBS is also pitching the potential property trust to overseas investors, although Australian investors would make the most logical sense with more knowledge of Telstra and the lower RBA interest rate compared to the US Federal Reserve.

Is This Good News For Telstra?

I think it’s a smart plan by Telstra to unlock cash which can be used for more important matters like investing for 5G.

However, an extra $1.5 billion of cash would not alter the significant challenges that Telstra is facing with the NBN and competitive mobile plans.

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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).

At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.

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