Trading Strategies for Alina Limited (Australian Stock Exchange): Make a Buy, Sell or Hold recommendation using various technical trading strategies.

Essay by davluongUniversity, Master'sA, May 2007

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Finance (Trading Strategies) 590 - Assignment David Luong - 12978652

Finance (Trading Strategies) 590

Assignment Project

Prepared By

David Luong (12978652)


Table of contents

2Introduction �

3Alinta Limited �

7US Dollar / Japanese Yen �

10The Dow Jones Industrial Average �

12Conclusion �

13References �



This report aims to make a buy, sell or hold recommendation on Alinta Limited, a stock traded on the Australian stock market, the USD/JPY exchange rate, and the Dow Jones Industrial Average based on fundamental and technical analysis. This report largely focuses on technical analysis where the use of Chart Patterns such as Wedges, and Triangles are examined, trends such as the use of Moving Average Patterns, and Oscillators such as Relative Strength Index and the Moving Average Convergence/Divergence oscillator.

Alinta Limited

Alinta Limited May 2005 - October 2005 (Chart:

Alinta has appreciated quite substantially in the past year, ranging from $7.00

a year ago to its present value of about $10.50. This has mainly been due to the fundamentals of Alinta being very strong with the belief that the purchase of ex-Duke's Energy assets is a good synergy with Alinta's business strategy. With the addition of power generation to become a national utility with interests in distribution networks, its development of electricity generation infrastructure, it is well positioned to be a total energy provider in a growing WA energy market. It is also scoring new contracts in other states to capitalize in the energy market over east. (Alinta, 2005)


This is what is driving Alinta fundamentally, but there are some key technical analyses from the last six months which can give an insight into future market action. Some of the ones used to analyse Alinta's performance over the last include Wedges, a double...