Technical Analysis: 19 Dec 2013

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
19 December 2013, 8:31 AM

Brambles (BXB)

The up trend from the July 2012 low has lost momentum over the past five months and the price has been trading sideways, fluctuating between $8.14 and $9.85. The current short term decline has approached its key support of $8.14, where initial buying interest is likely to arise.

The first potential upside price target is $8.80, however over the medium term levels towards $9.60 are achievable.

Forge Group (FGE)

After the massive gap down in late November 2013 the share price has settled down and has been trading sideways, fluctuating between $0.28 and $0.88. We believe the price will continue to consolidate within the boundaries of its current consolidation in the near term and we rate the stock as a Hold.

JB Hi-Fi (JBH)

The decline from the November 2013 high has lost momentum over the past few weeks and the price has been trading sideways, fluctuating between $18.64 and $20.09. A decisive break above this level is likely and will confirm that the correction is over. 

The first potential upside price target based on the breakout is $21.54, however levels towards $23.00 are achievable in the month(s) ahead.

Shine Corporation (SHJ)

SHJ has been trading in an up trend since listing which remains technically intact. The current pull back retraced to its short term up trend line crossing at $1.75, where initial buying interest is likely to arise. Momentum indicators have approached oversold territory, suggesting that the price is likely to bounce soon.

The potential upside price target based on the recent breakout is $2.09. Buy.

Commonwealth Bank (CBA)

CBA has been trading in an up trend over the past two years, which remains technically intact. The current pull back retraced close to its long term up trend line crossing at $72.00, where initial buying interest is likely to arise. The RSI and the stochastic indicators have approached oversold territory, suggesting that the price is likely to bounce soon. 

The first potential upside price target is $77.00, however higher prices are achievable over time. Accumulate.

If you are interested in any of these stocks, please contact your nearest Morgans office.

Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.

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