Technical update: 3 April 2018

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
03 April 2018, 8:22 AM

Motorcycle Holdings (MTO) – double blessed buy

MTO has been trading in an up trend since listing which is still technically intact. The recent correction has retraced to its previous support of $3.73 which appears solid and is likely to hold. A higher low appears to be forming on the daily chart showing that buying interest is building up. Given the proximity to key support and the improvement in the price structure and the momentum conditions we are comfortable accumulating the stock at current price levels.

The potential medium term upside price target is $4.80.

AP Eagers (APE) – double blessed buy

The down trend from the August 2016 high has lost momentum over the past year and the price has been trading sideways and building a large base. The medium term up swing is still in progress and we are of the view that higher prices could unfold in the near term. While our ideal entry price is around $8.00, the current prices are still attractive to accumulate the stock.

The potential upside price target is $9.10.

OZ Minerals (OZL) – accumulate

OZL has been trading in an up trend since May 2017 which is still technically intact. The current short term pull back is approaching its medium term up trend line crossing of $8.50 where initial support is likely to hold. The RSI indicator is close to oversold territory suggesting that the price is likely to bounce soon. Given the proximity to dynamic support and the oversold momentum conditions, we are of the view that buying support is likely to arise soon.

The potential upside price target is $9.00.

ResMed Inc (RMD) – double top

RMD has been trading in a strong up trend over the past year which is still technically intact. The current short term up swing has found resistance around its previous high of $12.81 and a double top appears to be currently forming on the daily chart. Bearish divergences between the price, the RSI and the MACD indicators have formed over the past two months showing that the up trend is losing momentum. Given the loss of momentum and the deterioration of the up trend we see the price as vulnerable to a short term pull back. 

The initial downside price target is $11.70, however this level could be exceeded.

Orocobre (ORE) – still in a correction

The up trend from the August 2017 low has lost momentum over the past three months and the price has been trading in a downward trajectory. Thursday's price action broke below support of $5.44 showing that the selling pressure is intensifying. Although the momentum indicators are approaching oversold territory, they remain structurally weak and we see a possibility of further weakness in the short term.

The potential downside price target is $4.90.

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.

  • Print this page
  • Copy Link