Superloop (SLC) – buy around $2.15
SLC has been trading sideways over the past two months, fluctuating between $2.30 and $2.60. Thursday's price action broke below support of $2.30, suggesting that the price could drop further in the short term. The potential short term share price weakness is towards $2.15, where support appears solid and is likely to hold. The momentum indicators are approaching oversold territory and we see such potential share price weakness as a great opportunity to buy the stock.
Our medium term upside price target is $2.55.
Megaport (MP1) – tracking well
After building a large base throughout April 2017 and October 2017 the price finally broke key resistance of $2.30 and has confirmed that a new secondary up trend is now in place. The current short term pull back has retraced to its medium term channel support line crossing at $2.50 where buying support is likely to arise. The stochastic indicator has reached oversold territory suggesting that the price is likely to bounce in the short term.
The first potential upside price target is $2.95. Over the long term, higher price levels are achievable.
Magellan Financial Group (MFG) – lifting our price target
In our last update on December 6, 2017 we discussed the improvement in the momentum conditions and the likelihood of the price trading higher in the months ahead. A consistent up trend channel has been established since our last update and our medium term upside price target of $27.00 was reached on Thursday. The weekly and daily momentum indicators remain in the bull market zone and we see a good probability of higher prices unfolding in the months ahead. Therefore, we lift our medium term price target to $28.50.
In the short term, the stock may experience a mild pullback which would present an opportunity to accumulate the stock.
Jumbo Interactive (JIN) – target reached
In our last update on November 2, 2017 we discussed the bullish implications from the breakout above resistance of $2.95 and we lifted our price target to $3.30. A strong rally has unfolded over the past two weeks and our upside target has now been reached. While we do continue to like the stock over the long term, we won't be lifting our price target further at this stage.
We will keep a close eye on the stock and will provide another update in due course.
Bega Cheese (BGA) – target reached
In our last update on November 7, 2017 we discussed the oversold nature of the stock and the likelihood of the price trading higher in the short term. A strong rally has unfolded over the past month and our price target of $7.70 has now been reached. The price is close to its key resistance of $8.15 where we expect selling pressure to arise in the near term.
Active traders may consider trimming positions.
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Disclaimer(s): Analyst may own shares in some or all of the companies mentioned.
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