Technical update: 25 September 2017

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
25 September 2017, 12:23 PM

BT Investment Management (BTT) – reversing direction

BTT has been trading in a correction mode over the past four months which now appears to be reversing direction. The medium term down trend line and the minor resistance (both crossing at $10.88) has been broken upwards, suggesting that higher prices are likely to unfold in the months ahead. The first potential upside price target is $12.45. Over the medium term, levels towards $13.00 are achievable.

We are comfortable accumulating the stock at current price levels and any potential short term share price weakness should be considered a great buying opportunity.

Suncorp Group (SUN) – building a base

SUN has been trading in a correction mode over the past two months which is still technically intact. The correction has lost momentum over the past week and the price appears to be in the process of building a base. The MACD and the RSI indicator have turned positive from oversold territory, suggesting that the price could bounce in the near term.

The potential upside price target is $13.94.

G8 Education (GEM) – heading higher

GEM has been trading in an up trend over the past year which is still technically intact. Friday's price action broke above key resistance of $4.19, suggesting that higher prices are likely to unfold over the long term. The potential upside price target based on the breakout if $4.50.

Any weakness in the short term should be considered a buying opportunity.

Orocobre (ORE) – approaching resistance

ORE has been trading in a strong up trend over the past month which is still technically intact. The current up swing has approached its dynamic resistance of $4.85 where initial selling pressure is likely to be encountered. The RSI indicator has formed a head and shoulders pattern, suggesting that the price may pull back in the short term.

Given the proximity to resistance and the overbought momentum conditions we are of the view that the near term upside from here is likely to be limited.

Link Administration Holdings (LNK) – accumulate

LNK has been trading in a correction mode over the past two months which now appears to be losing momentum. Last week's price action retraced to its static and dynamic support of $7.25 where buying interest is likely to arise. Although the stock is not oversold yet, given the proximity to support, we believe the price is likely to bounce soon.

The first potential upside price target is $7.80. Over the medium term, levels around $8.05 are achievable.

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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