Technical Analysis: 27 Feb 2014

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
27 February 2014, 2:04 PM

Buru Energy Limited (BRU)

The decline from the March 2013 high has lost momentum over the past eight months and the price has been trading sideways building a large base. The latest decline retraced close to its key support of $1.30, where initial buying interest is likely to arise. Momentum indicators have approached oversold territory, suggesting that the price is likely to bounce soon.

The first potential upside price target is $1.75, however over time higher price levels are achievable. Accumulate.

CSL Ltd (CSL)

CSL has been trading in an up trend over the past year, which remains technically intact. Wednesday’s price action broke above resistance of $71.20 confirming a large rectangle. The pattern has bullish implications and suggests that higher price levels are likely to unfold over the medium term. The first potential upside price target based on the breakout is $76.20.

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

JB Hi-Fi (JBH)

JBH has been trading in a correction mode since November 2013, which is still technically intact. The down trend has lost momentum over the past month and the price has been trading sideways. A break above minor resistance of $19.22 is likely and will confirm that a short term bottom has been posted.

The first potential upside price target based on the breakout is $20.96, however higher price levels are achievable over time.

Shine Corporation (SHJ)

SHJ has been trading in an up trend over the past ten months, which remains technically intact. Wednesday’s price action broke above key resistance of $1.89 confirming a large rectangle. 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 $2.12. Bullish breakout.

WorleyParsons (WOR)

The decline from the September 2013 high has lost momentum over the past three months and the price has been trading sideways. Wednesday’s price action decisively broke above minor resistance of $16.09 suggesting that higher price levels are likely to unfold in the short term. The potential upside price target is in the range between $17.80 and $18.00.

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

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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