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Technical update: 10 August 2018

Violeta Todorova

Crown Resorts (CWN) – bullish breakout

CWN has been trading in an up trend over the past two years which is still technically intact. Thursday's price action broke above its key resistance of $13.88 and has confirmed a large ascending triangle. The pattern has bullish implications and suggests that higher prices are likely to unfold in the months ahead.

The potential upside price target based on the breakout is $15.00.

Tabcorp Holdings (TAH) – heading higher

The decline from the December 2017 high has lost momentum over the past four months and the price has been trading sideways, fluctuating within the boundaries of a bullish ascending triangle. Tuesday's price action broke above its key resistance of $4.79 and has confirmed the pattern.

The potential medium term upside price target based on the breakout is $5.40 however this level could be exceeded.

The Star Entertainment Group (SGR) – double blessed buy

SGR has been trading in a down trend since February 2018 which is still technically intact. The recent price action retraced close to its key support of $4.65 which appears solid and is likely to hold. A bullish divergence between the price and the RSI indicator has formed on the daily chart showing that the down trend is losing momentum. A break above resistance of $5.10 is highly likely in our view which could trigger a rally to $5.40 in the short term.

Over the long term, levels to $5.80 are achievable.

Praemium (PPS) – double blessed buy

PPS has been trading in an up trend since March 2017 which is still technically intact. The current pull back has pushed the RSI and the MACD indicators into oversold territory, suggesting that the price is likely to bounce soon. A break above minor resistance of $0.86 is likely and will indicate that the correction is likely to be over.

The potential upside price target in the weeks ahead is $0.95.

Magellan Financial Group (MFG) – take profits

In our last update on June 18, 2018 we discussed the likelihood of the price trading higher in the months ahead and recommended clients buy the stock at $23.47. A strong rally has unfolded over the past month and our upside price target of $27.00 has now been reached. The current price action has approached its band of resistance between $28.16 and $29.50 where selling pressure is likely to arise. 

We recommend active clients trim positions.

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: 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.