Technical Analysis: 9 Jan 2014

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
09 January 2014, 11:36 AM

Cochlear (COH)

The down trend from the February 2013 high has lost momentum over the past six months and the price has been trading sideways. The current rally rebounded to its band of resistance between $60.28 and $62.07 where initial selling pressure is likely to arise. Momentum indicators have reached overbought territory, suggesting that the price is likely to pull back in the short term.

Given the proximity to resistance and overbought momentum levels we believe that some short term weakness is on the cards. ST weakness.

REA Group (REA)

REA has been trading in an up trend over the past year, which remains technically intact. Tuesday’s price action broke above minor resistance of $38.50, suggesting that the correction form the December 2013 high is over.

The first potential upside price target is $42.00, however over the longer term levels towards $43.80 are achievable. Accumulate.

Cabcharge Australia (CAB)

The down trend from the July 2013 high has lost momentum over the past four months and the price has been trading sideways building a base. The RSI and the stochastic indicators have approached oversold territory, suggesting that the price is likely to bounce towards $4.05 in the short term. 

A subsequent break above resistance of $4.08 will have bullish implications and trigger a rally to $4.45. Heading higher.

Platinum Asset (PTM)

PTM has been trading in an up trend over the past year, which is still technically intact. Last week’s price action reached a 12 month high of $6.98, where initial resistance is likely to arise. The RSI and the MACD indicators have reached overbought territory, suggesting that the price is likely to pull back in the short term. The potential downside price target is towards $6.40.

Over the long term, we see levels towards $7.50 achievable therefore, the potential short term share price weakness should be considered a buying opportunity. Buy on weakness.

Slater & Gordon (SGH)

SGH has been trading in an up trend over the past year, which remains technically intact. The stochastic indicator has approached oversold territory, suggesting that the price is likely to bounce soon.

The potential short term upside price target is in the range between $4.90 and $5.00. 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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