Technical Analysis: 26 Feb 2014

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
26 February 2014, 10:54 AM

APA Group (APA)

In our last update on the 5th of February 2014 we recommended buying the stock at $6.02 and our initial upside price target of $6.30 has now been reached. Recent price action broke above key resistance of $6.43 suggesting that higher price levels could unfold in the near term.

The potential upside price target based on the breakout is in the range between $6.80 and $6.90 where we will be looking to take profits.

Brambles (BXB)

BXB has been trading in an up trend over the past year, which remains technically intact. Tuesday’s price action broke above resistance of $9.32 confirming an ascending triangle. The pattern has bullish implications and suggests that higher price levels are likely to unfold over the medium term. The potential upside price target based on the breakout is $10.00. In the short term, the price is likely to experience a pull back as momentum indicators have reached overbought levels.

The expected short term share price weakness would provide a buying opportunity. Double blessed: buy on weakness.

Cabcharge Australia (CAB)

In our last update on the 9th of January 2014 we recommended buying the stock at $3.90 and our initial upside price target of $4.05 has now been reached. Tuesday’s price action decisively broke above resistance of $4.08 suggesting that higher price levels are likely to unfold in the near term.

The next potential upside price target is $4.45 where we will need to reassess. Bullish breakout.

Cardno (CDD)

CDD has been trading in a down trend since November 2013, which is still technically intact. The down trend has lost momentum over the past two months and the price has been trading sideways within the boundaries of a bullish inverse head and shoulders. A break above resistance of $6.69 will confirm the pattern and signal that the correction is over.

The potential upside price target based on the breakout is $7.30. Double blessed: buy on a break above $6.69.

Ramsay Health Care (RHC)

RHC has been trading in an up trend over the past year, which remains technically intact. Tuesday’s price action broke above key resistance of $45.17 suggesting that higher prices are likely to unfold in the months ahead. The next potential upside price target is $49.00, however over the long term higher levels are achievable. In the short term, the price may experience a pull back soon as momentum indicators have entered overbought levels.

The potential short term share price weakness should be considered a buying opportunity. Double blessed: buy on weakness.

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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