Technical Analysis: 25 Feb 2014

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
25 February 2014, 2:20 PM

Breville Group (BRG)

BRG has been trading in an up trend over the past year, which remains technically intact. Recent price action broke above key resistance of $9.23, confirming a large rectangle. The pattern has bullish implications and suggests that higher price levels are likely to unfold over the long term. The potential upside price target based on the breakout is $10.90. In the short term, the price is likely to experience a pull back as momentum indicators have entered into overbought levels.

The expected short term share price weakness would provide a buying opportunity.

Corporate Travel Management (CTD)

The decline from the November 2013 high has lost momentum over the past month and the price has been trading sideways, fluctuating between $4.91 and $5.58. A break above resistance of $5.58 will confirm that the correction is over and trigger higher prices in the near term.

The potential upside price target based on the breakout is in he range between $6.00 and $6.15. 

Magellan Financial Group (MFG)

In our last update on the 9th of January 2014 we recommended buying the stock at $11.48 and our initial upside price target of $12.80 has now been reached. Last week’s price action broke above key resistance of $12.87 confirming a large rectangle. The pattern has bullish implications and suggests that higher prices are likely to unfold over the long term. The potential upside price target is towards $16.00. In the short term, the price is likely to pull back as momentum indicators are overbought.

The expected short term share price weakness should be considered a buying opportunity. 

Perpetual (PPT)

PPT has been trading in an up trend over the past year, which remains technically intact. Monday’s price action decisively broke above resistance of $50.10, suggesting that the secondary up trend is likely to continue. The first potential upside price target over the medium term is $55.00. In the short term, the price is likely to experience a pull back soon as momentum indicators are in overbought levels.

Any short term share price weakness would provide a buying opportunity.

Spark Infrastructure (SKI)

In our last update on the 20th of November 2013 we recommended buying the stock at $1.62 and our initial upside target of $1.70 has now been reached. Recent price action broke above resistance of $1.72 pointing to a likely re-test of the $1.85 level. Momentum indicators have reached overbought territory, suggesting that the price is likely to pull back soon.

Given the proximity to resistance and overbought momentum levels we recommend active traders lock in profits around $1.85. Approaching resistance.

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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