Stockbroking | Wealth Management | Corporate Advice

x

Resizing text on the web

To increase or decrease the magnification of a web page, press Ctrl and '+' (plus) to zoom in or Ctrl and '-' (minus) to zoom out. To return the page to its original size, press Ctrl + 0.

You can also scroll the mouse wheel up and down while holding Ctrl to increase/decrease zoom level.

Blog

Technical update: 9 June 2017

Violeta Todorova

Crude Oil – target reached

In our last update on May 26, 2017 we discussed the overbought nature of the momentum indicators and the likelihood of the price declining in the short term. The price has weakened as expected over the past week and our downside price target of US$45.00 has now been reached. The current price is approaching its band of support between US$42.95 and US$43.76 where strong buying interest is likely to arise. The RSI and the stochastic indicators have approached oversold territory, suggesting that the current short term down swing is likely to reverse direction soon.

The potential upside price target in the month(s) ahead is US$51.00.

Oil Search (OSH) – in buy territory

OSH had struggled again to break above its key resistance of $7.75 and has been trading in a correction mode over the past month. The selling pressure has intensified over the past few weeks pushing the price down to its static and dynamic support of $6.70. The RSI and the stochastic indicators have reached oversold territory, suggesting that the price is likely to rebound soon.

The potential upside price target in the month(s) ahead is $7.40. Over the medium term, levels towards $8.30 are achievable. We are comfortable buying the stock at current price levels.

APN Outdoor (APO) – double blessed buy

In our last update on May 5, 2017 we discussed that the stock is under selling pressure and the likelihood of the price declining to $5.00 in the short term. A strong pull back has unfolded over the past month and our downside price target has been exceeded. The price appears to have bottomed at $4.50 last week which is close to key support of $4.35. The MACD indicator has reached oversold territory, suggesting that the price is likely to bounce in the near term. Given the proximity to key support and oversold momentum levels we are comfortable buying at current price levels.

The first potential upside price target is $5.20 however levels towards $5.50 appear easily achievable. 

Apollo Tourism & Leisure (ATL) – double blessed buy

ATL has been trading sideways since listing posting slightly higher lows and higher highs (a positive sign). The recent pull back has retraced close to its previous support of $1.24, where strong buying interest 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 $1.40, however this level could be exceeded. Given the proximity to support and oversold momentum levels we are comfortable buying the stock at current price levels.

Lovisa (LOV) – approaching buy territory

The up trend from the May 2016 low has lost momentum over the past three months and the price has been trading sideways, fluctuating between $3.23 and $4.16. The current short term pull back is approaching its key support of $3.23 where buying interest is likely to arise. The RSI indicator is close to oversold territory, suggesting that the price is likely to bounce soon. Although the stock is in accumulate territory at current price levels our ideal entry is below $3.30. 

The potential upside price target in the month(s) ahead is $4.00.

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.