Technical Analysis: 7 Jan 2014

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
07 January 2014, 8:41 AM

Ardent Leisure Group (AAD)

In our last update on the 16th of October 2013 we recommended buying the stock at $1.91 and our initial upside target of $2.10 has now been reached. Monday’s price action breached for a second time resistance of $2.06, showing that the bulls are ramping up momentum. A decisive break on a closing basis is likely and will confirm a rectangle pattern. The next potential upside price target based on the breakout is $2.22.

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

Fletcher Building (FBU)

The correction from the October 2013 high has lost momentum over the past month and the price has been trading sideways, building a small base. A break above minor resistance of $8.10 will confirm that the correction is over and trigger a rally in the short term.

The first potential upside price target is $8.50, however over the longer term higher price levels are achievable. Buy on a break above $8.10.

Select Harvest (SHV)

In our last update on the 25th of November 2013 we recommended buying the stock at $4.68 and our initial upside price target of $5.46 has now been reached. Momentum indicators have reached strongly overbought territory, suggesting that the price is likely to pull back towards $5.00 in the short term. 

Over the long term, we continue to like the stock and we believe that levels above $6.00 are achievable. ST weakness.

Telstra Corporation (TLS)

TLS has been trading in an up trend since June 2013, which remains technically intact. Momentum indicators have reached overbought territory, suggesting that the price is likely to pull back towards $5.15   in the short term. Over the medium term, we continue to like the stock and we believe that levels towards $5.50 are achievable.

Therefore, the expected short term share price weakness should be considered a buying opportunity. Buy on weakness.

Woodside Petroleum (WPL)

The up trend from the June 2013 low has lost momentum over the past four months and the price has been trading sideways, fluctuating between $36.84 and $39.54. The current short term decline is likely to retrace to $37.00, where we will be looking to accumulate the stock.

The potential upside price target in the month(s) ahead is towards $39.00. Buy around $37.00.

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.

  • Print this page
  • Copy Link