Technical Analysis: 24 Feb 2014

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
24 February 2014, 8:42 AM

Fletcher Building (FBU)

FBU has been trading in an up trend over the past year, which remains technically intact. Recent price action broke above key resistance of $8.79 confirming a large rectangle. The pattern has bullish implications and suggests that higher prices are likely to unfold over the medium term. The potential upside price target in the months ahead is $9.80.

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

Fairfax Media (FXJ)

In our last update on the 31st of January 2014 we recommended buying the stock $0.67 and our initial upside price target of $0.76 has been greatly exceeded. The price rallied to $0.93 and has reached strongly overbought territory. The current price action is close to its previous resistance of $0.99, where initial selling pressure is likely to arise.

Given the proximity to resistance and overbought momentum levels we believe that the near term upside from here is likely to be limited. Approaching resistance.

Hills (HIL)

The up trend from the June 2013 low has lost momentum over the past five months and the price has been trading sideways, fluctuating between $1.52 and $2.01. Friday’s price action broke on an intra-day basis above resistance of $2.01 showing that momentum is building up. A break on a closing basis is likely to follow and will confirm a large rectangle. The pattern has bullish prognosis and indicates that higher prices are likely over the medium term.

The first potential upside price target is $2.20, however higher prices are achievable over time. Bullish breakout.

Qube Holdings (QUB)

The decline from the October 2013 high has lost momentum over the past two months and the price has been trading sideways. A break above resistance of $2.15 will signal that the correction is over and trigger higher price levels in the near term.

The next potential upside price target is $2.25. Heading higher.

Silver Chef (SIV)

The decline from the September 2013 high has lost momentum over the past two months and the price has been trading sideways, fluctuating between $4.70 and $5.73. Friday’s price action decisively broke above resistance of $5.73, suggesting that higher price levels are likely to unfold in the month(s) ahead.

The first potential upside price target is $6.70, however higher price levels are achievable over the long term. Bullish breakout.

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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