Technical Analysis: 6 Mar 2014

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
06 March 2014, 10:04 AM

ALS Limited (ALQ)

ALQ has been trading in a down trend over the past year, which remains technically intact. The latest decline has lost momentum over the past few days and the price has been trading in a narrow trading range. The RSI and the stochastic indicators have reached oversold territory, suggesting that the price is likely to bounce in the short term. The potential upside price target is $8.00 - $8.05.

Over the long term, we don’t see a reversal of the down trend and at this point we only favour a short term bounce. ST bounce.

Greencross Limited (GXL)

GXL has been trading in an up trend over the past year, which remains technically intact. The latest pull back has lost momentum over the past few weeks and the price has been trading sideways. A break above minor resistance of $8.38 is likely and will signal that the correction is over.

The potential upside price target in the weeks ahead is $9.00, however over the long term higher price levels are achievable. Heading higher.

Collection House (CLH)

CLH has been trading in an up trend channel since November 2013, which is still technically intact. The latest pull back retraced to its up trend line crossing at $1.80 where initial buying interest is likely to arise. The stochastic indicator has reached oversold territory, pointing to a rally in the short term.

The potential upside price target is $1.95 where selling pressure could be seen. Approaching resistance.

Ainsworth Game Technology (AGI)

The up trend from the July 2013 low has lost momentum over the past three months and the price has been trading sideways. The latest pull back retraced close to support of $4.03, where initial buying interest is likely to arise. Momentum indicators have approached oversold territory, suggesting that the price is likely to bounce in the short term. The first potential upside price target is $4.40, followed by $4.60.

Over the medium term, our view on the stock is neutral and we rate it a hold. Heading higher.

Fortescue Metals Group (FMG)

The up trend from the June 2013 low has lost momentum over the past four months and the price has been trading sideways. The latest pull back retraced close to its key support of $5.01, 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 potential upside price target is $6.00. 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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