Technical Analysis: 13 Jan 2014

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
13 January 2014, 10:16 AM

Ausenco (AAX)

The decline from the October 2013 high has lost momentum over the past month and the price has been trading sideways, fluctuating between $0.57 and $0.75. A break above gap resistance of $0.75 will confirm that a small bottom has been posted and trigger a rally to $0.93. Over the long term, higher price levels are achievable.

Alumina (AWC)

The down trend from the February 2013 high has lost momentum over the past nine months and the price has been trading sideways, building a large base. Recent price action broke above key resistance of $1.11, suggesting that higher price levels are likely to unfold over the medium term. The potential upside price target based on the breakout is $1.31.

Any weakness in the short term would provide a good buying opportunity. Bullish breakout.

Domino's Pizza (DMP)

In our last update on the 9th of December 2013 we recommended clients buy the stock at $14.91 and our initial upside price target of $16.00 has now been reached. On Friday the price posted a record high of $17.51 and reached overbought momentum levels, suggesting that a short term pull back is on the cards. The potential downside price target is $16.00. 

Over the long term, we continue to like the stock and we see the potential short term share price weakness as a buying opportunity. Buy on weakness.

Fairfax Media (FXJ)

FXJ has been trading in an up trend since June 2013, which remains technically intact. The RSI indicator remains firmly in the bull market range, suggesting that higher prices are likely to unfold in the near term. Friday’s price action decisively bounced off its support and is likely to rally in the range between $0.69 and $0.72.

Over the long term, higher price levels are achievable. Heading higher.

Greencross Limited (GXL)

GXL has been trading in an up trend over the past year, which remains technically intact. The latest pull back retraced close to its previous resistance of $7.80, where initial buying interest is likely to arise. The stochastic indicator has turned positive from oversold territory, suggesting that the price is likely to bounce in the short term.

The potential upside price target is in the range between $8.70 and $9.00. Heading higher.

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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