Technical update: 20 November 2017

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
20 November 2017, 11:09 AM

Tabcorp Holdings (TAH) – target reached

In our last update on October 30, 2017 we discussed the likelihood of the price trading higher based on the breakout from the bullish ascending triangle. A strong rally has unfolded as anticipated and Friday's price action reached our price target of $4.90.

While at this point there is no clear reversal of the rally, we note that the RSI indicator is in strongly overbought territory and that the price close to its key resistance of $5.30. Therefore, we see the near term upside from here as limited.

Newcrest Mining (NCM) – target reached

In our last update on October 9, 2017 we discussed the likelihood of the price bouncing in the short term based on the oversold momentum conditions. The price has rallied 10% since our recommendation and our upside price target of $23.50 has now been reached.

The RSI and the MACD indicators have reached overbought territory, suggesting that the near term upside from here is likely to be limited.

Genworth Mortgage Insurance Australia (GMA) – take profits

In our last update on October 9, 2017 we discussed the likelihood of the price rallying in the short term and opened a trading buy on the stock at $2.80. A strong rally has unfolded over the past month and our upside price target of $3.00 has been reached and exceeded.

The trade delivered 11% in four weeks and although we see a possibility of the price overshooting from here we are happy to start trimming positions.

Evolution Mining (EVN) – target reached

In our last update on October 6, 2017 we discussed the likelihood of the price rising in the short term and opened a trading buy at $2.18. A strong rally has unfolded over the past month reaching a high of $2.56 on Thursday, exceeding our price target of $2.40.

The RSI, the MACD and the stochastic indicators are now in overbought territory, suggesting that the stock is vulnerable to a pull back in the short term. The trade delivered 14% and active traders may consider trimming positions.

Silver Chef (SIV) – target reached

In our last update on September 28, 2017 we discussed the likelihood of the price rising in the short term and opened a trading buy at $7.00. The price has run strongly since our recommendation and our initial upside price target of $8.00 has now been reached and exceeded. The trade delivered 18% since our recommendation and active clients may consider trimming positions.

Over the long term, the down trend appears to be losing momentum and the price is in the process of building a large base. We will keep an eye on major resistance of $8.88 and if we see a confirmation that the down trend is reversing direction we will provide an update in due course.

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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