Dentsply Sirona

08/31/16 03:59:11 PM

by Koos van der Merwe

When your analysis program suggests a buy on a stock, what do you do?

Security: XRAY
Position: Buy

Dentsply Sirona is the worlds largest manufacturer of professional dental products and technologies. The company develops and manufactures a complete line of dental and oral health products. They are headquartered in York, Pennsylvania, with their international headquarters based in Salzburg, Austria. The company employs approximately 15,000 people in more than 40 countries. The company was formed in 2016 through the merger of equals that combined Dentsply International, Inc. and Sirona Dental Systems, Inc.

Figure 1. Omnitrader chart suggesting a buy.

Graphic provided by: Omnitrader.

The chart in Figure 1 is a daily Omnitrader chart that brought the share to my attention. Running the analysis program using the NSP-33 strategy offered by Omnitrader, the analysis program highlighted the share as a buy. A look at the two indicators, the RSI 14 period and the Stochastic RSI 14 period, both are suggesting a buy as shown on the chart. The share price appears to have bounced off the lower internal band rising strongly to the share price of $60.77.

Figure 2. Monthly chart suggesting an Elliott WAVE 5 top.

Graphic provided by: AdvancedGET.

Looking at a monthly chart in using the Advanced GET program (Figure 2), an Elliott wave count suggests that the share price could be in a WAVE 5 top. Both indicators shown are overbought, but have not yet given a sell.

Figure 3. Daily chart with JM Internal Band indicator.

Graphic provided by: AdvancedGET.

The daily Advanced GET chart in Figure 3 has both indicators suggesting a buy as did the chart in Figure 1. However, the share price gave a JM sell on August 8th by breaking below the lower JM Internal Band. The JM Internal Band is a 15 period moving average offset by 2% positive and 2% negative. A move above the upper band suggests a buy and below the lower band a sell. Volume shown on the chart is below average. And did not rise strongly as the share price rose on August 19th, suggesting caution.

Traders could buy the share at the current price, expecting a rise based on the buy signals suggested by the two indicators. Investors however, using the JM Internal Band would wait for the share price to break above the upper JM Internal Band before buying. This is a share one should place on one's watch list.

Koos van der Merwe

Has been a technical analyst since 1969, and has worked as a futures and options trader with First Financial Futures in Johannesburg, South Africa.

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TECHNICAL ANALYSIS

Dentsply Sirona

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