Technical Analysis: 23 Dec 2013

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
23 December 2013, 9:08 AM

AMP Ltd (AMP)

AMP has been trading in a correction mode since late November 2013, which is still technically intact. The price retraced to its key support of $4.15, where initial buying interest is likely to arise. Momentum indicators have turned positive from oversold territory, suggesting that the price is likely to bounce in the short term.

The first potential upside price target is $4.60, however levels towards $4.80 are achievable over time. Accumulate.

ANZ Banking Group (ANZ)

ANZ has been trading in a correction mode since late November 2013, which now appears to be over. The short term down trend line was decisively broken upwards on Friday, showing that the bears are losing momentum. A break above minor resistance of $32.35 will signal that the correction is over and trigger a rally to $34.00.

Any weakness in the short term would provide a good buying opportunity. Accumulate.

National Australia Bank (NAB)

NAB has been trading in a correction mode since late November 2013, which appears to be approaching its end. The down trend line from the November 2013 high has been broken, showing that the decline is losing momentum and is likely to reverse. A break above minor resistance of $34.85 will confirm that the correction is over and trigger a rally to $37.00. 

Any weakness in the short term would provide a good buying opportunity. Accumulate.

Newcrest Mining (NCM)

NCM has been trading in a down trend over the past year, which is still technically intact. The latest down swing has lost momentum over the past three weeks and the price has been trading sideways, fluctuating between $6.96 and $7.70. Friday's price action decisively broke above minor resistance of $7.70, suggesting that the price is likely to bounce in the very short term. The potential upside price target is $8.50.

Over the long term, there are no signs of reversal of the down trend and at this point we only favour a short term bounce.

Westpac Banking Corp (WBC)

WBC has been trading in a correction mode since late November 2013, which is still technically intact. The down trend line on the leading RSI indicator has been broken recently, showing that the decline is losing momentum. Momentum indicators have turned positive from oversold territory, suggesting that the price is likely to bounce in the near term. 

The first potential upside price target is $33.00, however levels towards $35.00 are achievable over time.

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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