Technical update: 27 December 2017

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
27 December 2017, 7:00 AM

BHP Billiton (BHP) – first target reached

In our last update on November 23, 2017 we discussed the oversold nature of the momentum indicators and the likelihood of the price rallying in the short term. The price rallied over the past month and our first upside price target of $29.50 was reached on Friday (22nd Dec). The momentum indicators have approached overbought territory suggesting that the price may pull back soon.

Over the long term, we continue to like the stock and we see levels to $31.00 as achievable.

Rio Tinto (RIO) – target reached

In our last update on November 23, 2017 we discussed the oversold nature of the stock and the likelihood of the price trading higher in the near term. The expected rally has unfolded over the past few weeks and our upside price target of $75.00 has almost been reached. The momentum indicators are approaching overbought territory, suggesting that the price may pull back soon.

Over the long term, the up trend remains intact and at this point we don't see a reversal of the primary up trend.

Oil Search (OSH) – first target reached

In our last update on November 23, 2017 we discussed the oversold momentum conditions and the likelihood of the price rallying in the short term. A strong rally has unfolded over the past few weeks and our initial upside price target of $7.60 has now been reached. The current price action is testing its key resistance of $7.74, and we believe there is a high probability that the price will be broken upwards. Our medium term upside price target remains unchanged at $8.20.

Any short term share price weakness would provide an opportunity to add to positions.

Oz Minerals (OZL) – target reached

In our last update on September 29, 2017 we discussed the likelihood of the price trading higher in the months ahead and recommended clients buy the stock at $7.25. A strong rally has unfolded over the past few months and our medium term upside price target of $8.80 has now been reached.

While at this point the secondary up trend is intact and our price could overshoot to $9.60 over the medium term, on a short term basis the stock is overbought and is vulnerable to a pull back.

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.

  • Print this page
  • Copy Link