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Technical update: 13 April 2018

Violeta Todorova

Webjet (WEB) – accumulate

WEB has found resistance around $12.50 and has been trading in a correction mode over the past month as flagged in our last update on February 23, 2018. The current down swing has retraced to its previous resistance of $10.69 where initial buying support is likely to hold. The RSI and the MACD indicators have approached oversold territory suggesting that the price is likely to bounce soon. Although at this point there is no sign that the correction is complete, given the proximity to previous resistance (which may act as support) and the oversold momentum readings, we are comfortable accumulating around current prices.

The initial upside price target is $12.00. Over the long term, levels to $13.00 are achievable.

South32 (S32) – heading higher

The correction from the January 2018 high has lost momentum and over the past two months the price has been trading sideways within the boundaries of a small ascending triangle. The price has breached its resistance of $3.45 showing that buying interest is building up. A decisive break above resistance is likely to follow and will confirm the pattern.

The potential upside price target based on the breakout is $3.90 where resistance is likely to arise.

Kogan.com (KGN) – tactical buy

KGN has been trading in a strong up trend since June 2017 which is still technically intact. The recent pull back has retraced to its long term up trend line crossing at $8.20 where initial buying interest is likely to arise. The RSI and the MACD indicators are turning positive suggesting that the price is likely to bounce in the short term.

The initial upside price target is $10.00. Over the long term, higher price levels are achievable.

Panoramic Resources (PAN) – tactical buy

PAN has been trading in a strong up trend since June 2017 which is still firmly intact. The current pull back has retraced to its long term up trend line crossing at $0.41 where support is likely to hold. The RSI and the MACD indicators have approached oversold territory suggesting that the price is likely to bounce soon. Given the proximity to dynamic support and the oversold momentum readings we are comfortable opening long positions at current price levels. 

The potential upside price target is $0.55.

Australian Mines (AUZ) – tactical buy

The up trend from the September 2017 low has lost momentum over the past five months and the price has been trading sideways, fluctuating between $0.078 and $0.155. The current short term pull back has retraced close to its key support where strong buying interest is likely to arise. The RSI indicator has reached oversold territory suggesting that the price is likely to bounce in the short term.

The potential upside price target is $0.11.

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.