Lonestar Resources Ltd (ASX:LNR) Trading Outlook

LONESTAR FPO SET closed down -0.600 at 7.400. Volume was 99% below average (consolidating) and Bollinger Bands were 15% narrower than normal.

Open High Low Close Volume___
7.400 7.400 7.400 7.400 40

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 7.73 7.17 9.06
Volatility: 77 121 128
Volume: 1,452 5,277 8,912

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

LONESTAR FPO SET gapped down today (bearish) on light volume. Possibility of a Common Gap which usually coincides with a lack of interest in the security. Common Gaps are fairly irrelevent for forecasting purposes. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.

LONESTAR FPO SET is currently 18.3% below its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into LNR.AX (mildly bullish). Our trend forecasting oscillators are currently bullish on LNR.AX and have had this outlook for the last 21 periods.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 65.2174. This is not an overbought or oversold reading. The last signal was a sell 0 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 47.13. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 26 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -108.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 4 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 9 period(s) ago.

Lonestar Resources Limited is an Australia-based oil and gas company. The principal activity of the Company is the management and operation of oil and gas producing and prospective properties in the Unites States of America and the development and exploration of oil and gas properties in the Unites States of America. The Company operates its unconventional leasehold, which covers an area of approximately 62,000 net acres in the Eagle Ford Shale and Bakken Shale plays. The Eagle Ford Shale is an oil and natural gas producing stratigraphic horizon of sedimentary rock that extends across portions of south Texas forming a band of around 50 to 100 miles wide and 400 miles long. The entire Williston Basin is spread across North Dakota, South Dakota, Montana and parts of southern Canada. The basin produces oil and natural gas from various producing horizons, including, the Judith River, Charles, Amsden, Lodgepole, Bakken, Three Forks, Nisku, Madison and Red River formations.

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