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Technical update: 27 April 2018

Violeta Todorova

Rio Tinto (RIO) – at resistance

The up trend from the May 2017 low has lost momentum over the past two months and the price has been trading sideways, fluctuating between $72.30 and $82.73. The current short term up swing has rebounded to its previous resistance, where initial selling pressure is likely to arise. The RSI and the stochastic indicators have reached overbought territory suggesting that the price is likely to pull back in the short term.

The potential downside price target is $76.00.

Northern Star Resources (NST) – tactical buy

NST has been trading in a strong up trend channel since December 2016 which remains firmly intact at this point. The latest short term down swing has lost momentum and the price has been building a small base over the past few weeks. The RSI indicator has retraced to its bull market support suggesting that the price is likely to bounce in the short term.

The potential upside price target is $6.90.

Ramsay Health Care (RHC) – building a base

The decline from the January 2018 high has retraced to its key support of $61.06 which appears solid and is likely to hold. The decline has clearly lost momentum over the past month and the price appears to have been in the process of building a small base. A subsequent break above minor resistance of $64.80 is likely and will trigger higher prices in the months ahead.

The potential upside price target is $68.00.

Treasury Wine Estates (TWE) – bullish breakout

TWE has been trading in a strong up trend over the past two years which is still firmly intact. Thursday's price action decisively broke above its resistance of $18.09 suggesting that the up trend continues and that higher price levels are likely to unfold in the near term.

The potential upside price target based on the breakout is $19.30.

Speedcast International (SDA) – bullish breakout

SDA has been trading in a strong up trend over the past eight months which remains firmly intact. Thursday's price action decisively broke above its key resistance of $5.72 suggesting that higher prices are likely to unfold in the near term.

The initial upside price target based on the breakout is $6.30.

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.