Technical Analysis: 4 Mar 2014

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
04 March 2014, 8:56 AM

ANZ Banking Group (ANZ)

The decline from the October 2013 high has lost momentum over the past month and the price has been trading sideways, fluctuating between $28.84 and $32.45. The latest rally re-tested its previous resistance of $32.45, where initial selling pressure is likely to arise. The RSI and the stochastic indicators have reached overbought territory, suggesting that the price is likely to pull back in the short term.

The first potential downside target is in the range between $30.50 and $31.00. ST weakness.

Ardent Leisure Group (AAD)

In our last update on the 19th of February 2014 we recommended buying the stock at $2.18 and our initial upside price target of $2.36 has now been reached. The RSI and the MACD indicators have reached overbought territory, suggesting that the price is likely to pull back in the short term. Over the long term, we continue to like the stock and we believe that higher price levels are achievable.

Therefore, the expected short term share price weakness would provide a buying opportunity.

Beadell Resources (BDR)

The decline from the October 2013 high has lost momentum over the past few months and the price has been trading sideways. The higher lows show that buying pressure is building up, suggesting that a break above resistance of $0.89 is likely. Once this level is cleared expect a rally to $1.00.

We see current price levels as attractive to buy the stock. Double blessed buy.

SEEK (SEK)

SEK has been trading in an up trend over the past six months, which is still technically intact. The price enjoyed a strong run over the past month and has posted a record high of $17.45 on Friday. Momentum indicators have reached overbought levels on a daily and weekly basis, suggesting that the price is likely to pull back in the short term.

Over the long term, we continue to like the stock and believe that higher price levels are achievable.

Freedom Foods (FNP)

The decline from the October 2013 high has lost momentum over the past few months and the price has been trading sideways. Recent price action broke on an intra-day basis resistance of $2.89, showing that momentum is ramping up. A decisive break on a closing basis is likely and will confirm that the correction is over and trigger higher prices in the near term.

The first potential upside price target is $3.20, however levels towards $3.50 are achievable. Double blessed: buy on a break above $2.89.

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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