Technical update: 9 April 2018

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
09 April 2018, 8:34 AM

Orocobre (ORE) – tactical buy

In our last update on April 3, 2018 we discussed the likelihood of the price declining further in the short term and our downside price target of $4.90 has now been reached. The RSI and the stochastic indicators have reached oversold territory suggesting that the price is likely to bounce in the short term.

The first potential upside price target is $5.50. Over the long term higher price levels are achievable.

Scentre Group (SCG) – building a base

The decline from the December 2017 high has lost momentum over the past month and the price has been trading sideways within the boundaries of an ascending triangle. The pattern has bullish implications and suggests that higher prices are likely to unfold in the months ahead. A break above resistance of $4.02 is likely and will confirm the pattern.

The initial upside price target based on the breakout is $4.25 however this level could be exceeded.

Nick Scali (NCK) – tactical buy

The up trend from the June 2017 low has lost momentum over the past two months and the price has been trading sideways, fluctuating between $6.50 and $7.34. The current short term down swing has retraced to its support where initial buying interest is likely to arise. The RSI and the stochastic indicators have reached oversold territory suggesting that the price is likely to bounce in the short term.

The potential upside price target is $7.20.

Galaxy Resources (GXY) – tactical buy

The down trend from the January 2018 high has lost momentum over the past two months and the price has been trading sideways, fluctuating between $2.82 and $3.57. The current short term down swing has retraced to its support 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. Given the proximity to support and the oversold momentum readings we are comfortable accumulating the stock around current price levels.

The potential upside price target is $3.40.

Northern Star (NST) – tactical buy

NST has been trading in a strong up trend since December 2016 which is still technically intact. The current short term pull back has retraced close it its long term up trend line where buying support is likely to arise. The RSI and the stochastic indicators have reached oversold territory suggesting that the price is likely to bounce in the short term. Given the proximity to dynamic support of $5.90 and the oversold momentum conditions we are comfortable accumulating the stocks around current prices.

The potential upside price target is $6.90.

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