Technical update: 22 December 2017

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
22 December 2017, 8:35 AM

Megaport (MP1) – target reached

In our last update on December 8, 2017 we discussed the likelihood of the stock finding support around $2.50 and the price rallying in the short term. A strong rally has unfolded over the past three weeks with the price greatly exceeding our price target of $2.95. The current price action is testing its key resistance of $3.19 where initial selling pressure may arise.

Over the long term, we continue to like the stock and we see higher price levels as achievable.

Silver Chef (SIV) – accumulate

In our last update on November 20, 2017 we discussed the likelihood of the price finding resistance in the short term and we closed our trading buy position at $8.28. The price declined over the past month and has approached its key support of $6.45. The RSI indicator has approached oversold territory suggesting that the price is likely to bounce soon. Given the proximity to support and to oversold momentum levels we are comfortable accumulating the stock around current price levels.

The potential upside price target is $7.70.

Woodside Petroleum (WPL) – first target reached

In our last update on November 17, 2017 we discussed the likelihood of the price bouncing in the short term and recommended clients buy the stock at $30.89. The price has rallied over the past month and our first upside price target of $32.50 has now been reached.

While we see a possibility of the price rising further to $33.50 - $33.90 in the near term, we would be looking to trim positions around these price levels.

Crown Resorts (CWN) – target reached

In our last update on November 7, 2017 we discussed the implications of the the bullish breakout and the likelihood of the price rising in the short term. A strong rally has unfolded over the past month and our initial upside price target of $12.60 has now been reached. The current price action has approached its key resistance of $13.34 where initial selling pressure is likely to arise.

Given the proximity to its key resistance and to overbought momentum levels, we see the near term upside from here as limited.

Newcrest Mining (NCM) – tactical buy

In our last update on November 20, 2017 we discussed the overbought nature of the stock and the likelihood of short term weakness. The price declined to its medium term up trend line crossing at $21.70 where initial support is likely to hold. The RSI and the stochastic indicators have turned positive from oversold levels suggesting that the price is likely to bounce in the short term.

The potential upside price target is $24.00.

More information

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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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