Technical update: 12 June 2017

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
12 June 2017, 11:18 AM

QUBE Holdings (QUB) – heading higher

QUB has been trading in a consistent up trend since November 2016 which remains technically intact. The momentum indicators are firmly in the bull market range and suggest that higher price levels are likely to unfold in the months ahead. 

A break above resistance of $2.69 is likely and will trigger a rally to at least $2.80. Over the long term, higher price levels are achievable.

Rio Tinto (RIO) – heading higher

RIO has been trading in a correction mode over the past few weeks which now appears to be over. Friday's price action broke above its short term down trend line suggesting that higher prices are likely to unfold in the short term.

The potential upside price target is $67.00. Over the medium term, levels towards $69.00 are achievable.

Bapcor (BAP) – buy around $4.90

BAP has been trading in a correction mode since August 2016 which is still technically intact. The current short term down swing is approaching its key support of $4.83 where buying interest is likely to arise. The momentum indicators are approaching oversold territory, suggesting that the price is likely to bounce soon.

The first potential upside price target is $5.20, however the price can overshoot to $5.50. We would be looking to open long positions around $4.90. 

Aveo Group (AOG) – accumulate

AOG has been trading sideways over the past five months, fluctuating between $3.08 and $3.44. The current short term down swing is approaching its support of $3.08 where buying interest is likely to arise. The momentum indicators have approached oversold territory, suggesting that the price is likely to bounce soon.

The first potential short term price target is $3.30 however the price can overshoot to $3.40.

S&P 500 – target reached

In our last update on June 2, 2017 we discussed the bullish implications of the breakout in the short term and our price target of 2450 has now been reached. The weekly and daily momentum indicators have reached overbought territory suggesting that the index is vulnerable to a pull back. The potential short term downside target is 2370. 

At this point our long term view on the market remains positive and we only favour a short term correction.

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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