TLS - Rate of Change

A request was received to look at TLS with the Rate of Change method. The result is shown in the graph below of the Rate of Change (7 days) with the Last Price of Telstra on a daily basis up to today (28/05/08).

The number of days for ROC was chosen such that looking on past events, it seemed to be a reliable indicator. Looking at the current trend, the ROC reached 0% and is on the way down. If the ROC becomes negative and remain so, then there would be a sustained drop in the share price.

This may be the time to risk opening a short as the position would be favourable if the ROC becomes negative. Those with short open, should be waiting positively in anticipation of further drop.