Technical Analysis: 20 Feb 2014

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
20 February 2014, 9:33 AM

Wesfarmers (WES)

In our last update on the 7th of February 2014 we recommended buying the stock at $42.44 and our short term upside price target of $44.00 has now been reached. The stochastic indicator has reached overbought territory, suggesting that the price is likely to pull back in the short term. The potential downside price target is towards $41.50.

Over the medium term, our view on the stock is neutral and we rate it a hold. ST weakness.

Woodside Petroleum (WPL)

In our last update on the 3rd of February 2014 we recommended buying the stock at $37.38 and our short term upside price target of $39.00 has now been reached. The stochastic indicator has turned negative from overbought territory, suggesting that the price is likely to pull back in the short term. The potential downside price target is $37.00.

Over the medium term, our view on the stock is neutral and we rate it a hold. ST weakness.

Ardent Leisure Group (AAD)

AAD has been trading in an up trend over the past year, which is technically intact. Monday’s price action broke above key resistance of $2.08 confirming a large rectangle. The pattern has bullish implications and suggests that higher price levels are likely to unfold in the months ahead. The first potential upside price target based on the breakout is $2.36, however higher price levels are achievable over the long term.

Any weakness in the short term would provide a buying opportunity. Double blessed buy.

Computershare (CPU)

CPU has been trading in an up trend over the past year and our latest upside price target of $11.80 has now been reached. Momentum indicators remain very constructive and are firmly in the bull market range. Therefore, we expect higher prices to unfold over the medium term and we lift our price target to $12.90.

Any weakness in the short term would provide a buying opportunity. Heading higher.

Sonic Healthcare (SHL)

The up trend has lost momentum over the past few months and the price has been trading sideways, fluctuating within the boundaries of an ascending triangle. The pattern has bullish prognosis and suggests that higher prices are likely to unfold over the medium term. A break above key resistance of $17.27 will confirm the pattern and trigger a rally in the month(s) ahead.

The next potential upside price target is $18.00.

More information

If you are interested in finding out more, 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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