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Technical update: 5 April 2018

Violeta Todorova

Oil Search (OSH) – double blessed buy

OSH has been trading in a correction mode over the past three months which now appears to be losing momentum. A higher low has formed on the daily chart suggesting that support of $6.99 is likely to hold and that the price is likely to be in the process of building a small base. The MACD indicator has turned positive from oversold territory suggesting that the price is likely to trade higher in the near term.

The first potential upside price target is $7.80 however over the long term higher price levels are achievable.

AMP Ltd (AMP) – approaching key support

AMP has been trading in a correction mode over the past month which is still technically intact. The current price action is approaching its key support of $4.74 where initial buying interest is likely to arise. The RSI and the MACD indicators have reached oversold territory suggesting that the price is likely to bounce soon. We would be looking to accumulate the stock around $4.80.

The first potential upside price target is $5.20 however levels to $5.40 are achievable over time.

Healthscope (HSO) – short term weakness

HSO has been trading in a down trend since September 2016 which is still technically intact. The current upswing has lost momentum over the past two weeks and the price has been trading within the boundaries of a small bearish descending triangle. Therefore, we see a good probability of the price declining to $1.80 in the short term.

Over the medium term, we are of the view that the price will continue to trade sideways between $1.70 and $2.10 and our view on the stock is neutral.

Beacon Lighting (BLX) – double blessed buy

BLX has been trading in an up trend since August 2017 which is still technically intact. The RSI indicator has retraced to its bull market support suggesting that the current short term pull back is likely to be over soon. Given the proximity to support of $1.45 and the oversold momentum readings we are comfortable accumulating the stock around current price levels.

The potential upside price target is $1.75.

Medibank (MPL) – approaching key support

The up trend from the September 2016 low has clearly lost momentum over the past three months and the price has been trading in a downward trajectory. The current price action is approaching a solid band of support around $2.65 where strong buying interest is likely to arise. The RSI and the MACD indicators have reached oversold territory pointing to a likely bounce in the short term.

The initial upside price target is $3.05. The current and potentially further short term share price weakness presents a good tactical opportunity to buy the stock.

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.