Technical update: 18 December 2017

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
18 December 2017, 8:08 AM

Wesfarmers (WES) – take profits around $45.50

In our last update on June 2, 2017 we discussed the likelihood of the price declining to its support of $39.65 where we highlighted that strong buying interest is likely to arise and recommended clients buy around that level. A slow but consistent rally has unfolded over the past six months and the current price action is approaching its band of resistance between $45.60 and $46.06, where selling pressure is likely to arise.

Active clients may consider trimming positions around $45.50 - $46.00.

KGL Resources (KGL) – lifting our target

In our last update on August 28, 2018 we discussed the likelihood of the price rallying in the months ahead and recommend clients buy the stock at $0.31. A consistent rally has unfolded over the past four months and our price target of $0.37 has been reached. The weekly and daily charts remain constructive and we favour higher prices in the months ahead.

We remain comfortable accumulating the stock at current price levels and we lift our price target to $0.42.

Ardent Leisure Group (AAD) – tactical buy

In our last update on October 26, 2017 we discussed the likelihood of the price declining in the short term and recommended clients take profits at $1.92 (our previous target was $1.85). The expected short term price weakness has unfolded over the past month and the current price declined to its previous support of $1.67 where buying interest is likely to arise. The momentum indicators have reached oversold territory suggesting that the price is likely to bounce in the short term. The potential upside price target is $1.90.

The current share price weakness presents a good buying opportunity for active clients.

BT Investment Group (BTT) – double blessed buy

The correction from the May 2017 high has lost momentum and over the past three months the price has been trading sideways, fluctuating between $10.14 and $11.70. The current short term down swing has approached its key support where initial buying interest is likely to arise. The momentum indicators are close to oversold territory suggesting that the price is likely to bounce in the short term. 

The potential upside price target is $11.70. 

Southern Cross Electrical (SXE) – high conviction buy

SXE has been trading in an up trend over the past year which is still technically intact. The latest pull back has lost momentum over the past month and the price has been in the process of building a small base. The MACD indicator is turning positive from oversold territory suggesting that the price is likely to bounce in the short term.

The potential upside price target is $0.84. We are comfortable buying the stock at current price levels.

More information

Morgans clients can login to access all recent technical analysis on companies we cover. If you are interested in finding out more, please contact your nearest Morgans office.

Disclaimer(s): Analyst may own shares in some or all of the companies mentioned.

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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