Technical Analysis: 16 Jan 2014

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
16 January 2014, 8:36 AM

Crown (CWN)

CWN has been trading in an up trend over the past year, which remains technically intact. The up trend has lost momentum over the past few months and the price has been trading sideways, fluctuating between $15.65 and $17.38. a break above resistance of $17.38 will confirm a rectangle pattern and will trigger higher prices over the medium term. 

The potential upside price target based on the breakout is $19.11. Buy on a break above $17.38.

Wesfarmers (WES)

The rally from the December 2013 low has lost momentum over the past few weeks and the price has been trading sideways, fluctuating between $43.33 and $44.30. Tuesday’s price action broke below minor support of $43.33 and has confirmed that a small top has been posted.

The potential short term downside price target based on the breakout is $42.36. Heading lower.

Aurizon Holdings (AZJ)

AZJ has been trading in an up trend over the past year, which is still technically intact. The latest pull back retraced to its previous resistance of $4.82, where initial buying interest is likely to arise. The RSI and the stochastic indicators have approached oversold territory, suggesting that the price is likely to bounce soon. 

The first potential upside price target is $4.95, however higher prices are achievable over the medium term. Accumulate.

Seven West Media (SWM)

The decline from the September 2013 high has lost momentum over the past few months and the price has been trading sideways, fluctuating between $2.08 and $2.40. The latest pull back retraced close to its support of $2.08, where initial buying interest is likely to arise. The RSI and the stochastic indicators have approached oversold territory, suggesting that the price is likely to bounce soon.

The first potential upside price target is $2.35. Accumulate. 

Sydney Airport (SYD)

SYD has been trading in a down trend channel since October 2013, which remains technically intact. The price retraced to its previous support of $3.69, where initial buying interest is likely to arise. A bullish divergence between the price and the RSI indicator has formed throughout December 2013 and January 2014, suggesting that the price is likely to bounce in the near term.

The first potential upside price target is $3.85, followed by $3.95. Over the medium term, higher price levels are achievable. Accumulate.

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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