Technical update: 2 October 2017

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
02 October 2017, 10:10 AM

Megaport (MP1) – doubled blessed buy

MP1 has been trading sideways over the past five months fluctuating between $1.81 and $2.30. The current down swing has approached its band of support between $1.81 and $1.88 where initial buying interest is likely to arise. The RSI and the stochastic indicators have reached oversold territory, suggesting that the price is likely to bounce soon.

The first potential upside price target is $2.15. Levels to $2.30 are achievable in the months ahead.

Webjet (WEB) – double blessed buy

The rally from the November 2016 low has taken a breather over the past two months and the price has been trading sideways, fluctuating between $10.51 and $13.19. The current short term down swing has approached its support where initial buying interest is likely to arise. The RSI and the stochastic indicators have approached oversold territory, suggesting that the price is likely to bounce soon.

The first potential upside price target is $11.90. Over the medium term, levels to $12.70 are achievable.

Lindsay Australia (LAU) – buy

The down trend from the August 2016 high has lost momentum over the past four months and the price has clearly been establishing a wide trading range. The higher low on the daily chart is an encouraging sign and we are of the view that the price is at a turning point. The RSI completed a bottom reversal pattern, suggesting that higher prices are likely to unfold in the month(s) ahead. A break above resistance of $0.39 is highly likely and will trigger a rally to $0.45.

We are comfortable buying the stock at current price levels.

Change Financial (CCA) – heading higher

The down trend from the May 2017 high for Change Financial (formerly Chimpchange) has lost momentum over the past two months and the price has been trading sideways and building a large base. The higher low is an encouraging sign and shows that buying interest is building up. A break above resistance of $0.70 is highly likely and will trigger a rally to $0.80.

Although the stock is not very liquid it has been forming very clear patterns since listing. Therefore we have high confidence that the price can run higher once the resistance of $0.70 is cleared.

Freedom Oil and Gas (FDM) – buy

FDM has been trading in an up trend since July 2016 which is still technically intact. The up trend has lost momentum over the past two months and the price has been trading in a wide range. The recent pull back has retraced to its long term up trend line crossing at $0.095 where initial support is likely to hold. The down trend line on the leading RSI indicator has been broken pointing to higher prices in the month(s) ahead.

The potential upside price target is $0.125 however this level could be exceeded.

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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