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Blog

Technical update: 23 April 2018

Violeta Todorova

Panoramic Resources (PAN) – lifting our target

In our last update on the 13th of April we discussed the likelihood of the price trading higher in the short term and recommended clients buy the stock at $0.465. A strong rally has unfolded over the past week and our initial upside price target of $0.55 has almost been reached. The weekly chart remains constructive and the momentum indicators are firmly in the bull market range. Therefore, we lift our medium term price target to $0.58.

In the short term, the price may experience a pull back as the stochastic indicator has reached overbought territory. Such potential short term share price weakness would provide a buying opportunity.

ERM Power (EPW) – double blessed buy

EPW has been trading in an up trend over the past two years which is still firmly intact. The momentum indicators are constructive and we favour higher prices over the medium to long term. The RSI and the stochastic indicators have turned positive from oversold territory suggesting that the price is likely to bounce in the short term.

The initial upside price target is $1.90 however this level could be exceeded. Our ideal entry is around $1.65.

BHP Billiton (BHP) – approaching resistance

BHP has been trading in an up trend over the past two years which remains firmly intact. The current short term up swing is approaching its resistance of $32.16 where initial selling pressure is likely to arise. The RSI and the stochastic indicators are approaching overbought territory suggesting that the near term upside from here is likely to be limited and that the price is vulnerable to a short term pull back.

Over the long term, we continue to like the stock and the potential short term share price weakness would provide a buying opportunity. We will provide an update in due course.

Woodside Petroleum (WPL) – target reached

In our last update on the 29th of March we discussed the likelihood of the price trading higher and recommended clients buy the stock around $28.40. A strong rally has unfolded over the past few weeks and our initial upside price target of $30.70 has now been reached and exceeded. the RSI indicator is approaching overbought territory suggesting that the stock is vulnerable to a short term pull back.

Over the long term, the price is trading in a trading range between $27.84 and $34.59, therefore we see a probability of the price rising to $33.00 in the months ahead.

Iluka Resources (ILU) – target reached

In our last update on the 2nd of march we discussed the likelihood of the price trading higher and lifted our price target to $11.50. A strong rally has unfolded over the past few weeks and our upside target has now been reached. The RSI and the stochastic indicators have reached overbought territory, suggesting that the stock is vulnerable to a short term pull back.

The potential short term downside price target is $11.00.

More information

Morgans clients can login to view all recent technical analysis on companies we cover by browsing the research section and filtering by 'technical analysis' in the Market Updates section. 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.