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Technical update: 8 December 2017

Violeta Todorova

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.

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.