Technical Analysis: 24 Dec 2013

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
24 December 2013, 8:57 AM

AGL Energy (AGK)

AGK has been trading in a correction mode since October 2013, which is still technically intact. The price retraced close to its band of support between $13.85 and $14.11, where initial buying interest is likely to arise. The MACD indicator has reached oversold territory, suggesting that the downside from here is likely to be limited. A break above minor resistance of $14.84 will confirm that the correction is over and trigger higher prices in the near term.

The first potential upside price target based on the breakout is $15.40, however higher prices are achievable over the medium term. Accumulate.

Twenty-First Century Fox (FOX)

FOX has been trading in an up trend over the past year, which remains firmly intact. Recent price action decisively broke above resistance of $36.69, confirming a large rectangle pattern. The pattern has bullish implications and suggests that higher prices are likely to unfold over the medium term. The potential upside price target based on the breakout is $39.35.

Any weakness in the short term would provide a buying opportunity. Buy on weakness.

S&P 500

The S&P 500 has been trading in an up trend channel over the past year, which is still technically intact. After reaching overbought and diverging momentum conditions the market corrected in time, rather than in price, suggesting that sentiment is still strong. Friday’s price action broke above resistance of 1813, confirming a small rectangle. The pattern has bullish implications and suggests that higher levels are likely to unfold in the near term. 

The potential upside target based on the breakout is 1860, however levels towards 1900 are achievable over time. 

S&P/ASX 200 (XJO)

After reaching extremely oversold levels in mid December 2013 the market bounced and has been trading in a recovery mode over the past week. The impulsive nature of the rally is a bullish sign and suggests that the correction most probably has bottomed at 5028 and that higher levels are likely to unfold in the near term.

The potential upside target is 5450, however over the long term levels towards 6000 are achievable.

Super Retail Group (SUL)

SUL has been trading in an up trend over the past year, which remains technically intact. The latest pull back has lost momentum over the past few weeks and the price has been trading sideways, fluctuating between $12.57 and $13.01.

A break above minor resistance $13.01 will confirm that the correction is over and trigger a rally to $13.60, however over the long term higher price levels are achievable. 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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