Technical Analysis: 3 December 2018

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
03 December 2018, 8:55 AM

NEXTDC (NXT) – approaching resistance

The down trend from the June 2018 high has lost momentum over the past two months and the price has been trading sideways, fluctuating between $5.61 and $6.81. The current short term up swing is approaching its resistance where initial selling pressure is likely to arise.

The RSI indicator rebounded to its resistance suggesting that the near term upside from here is likely to be limited.

ANZ Banking Group (ANZ) – short term weakness

ANZ enjoyed a good rebound over the past two weeks which got arrested at its 50.00% Fibonacci retracement ratio (crossing at $27.50), measured from the August 2018 high to the October 2018 low. The RSI indicator remains in the bear market range showing the price continues to be under selling pressure. The RSI and the stochastic indicators have turned down from overbought territory suggesting that the price is vulnerable to a short term pull back.

The potential downside price target is $25.00.

National Australia Bank (NAB) – short term weakness

NAB has been trading in a secondary down trend since August 2018 which remains technically intact. The latest short term up swing has pushed the RSI indicator into resistance of 53% suggesting that the near term upside from here is likely to be limited. The stochastic indicator has reached overbought territory pointing a likely pull back in the short term.

The potential downside price target is $23.50.

Aristocrat Leisure (ALL) – approaching support

ALL has been trading in a downward trajectory since July 2018 which is still technically intact. The current down swing is approaching support of $22.72 where initial buying interest is likely to arise. The daily momentum indicators are approaching oversold territory suggesting that the price is likely to bounce soon. The potential upside price target is $26.00. The weekly RSI indicator broke below its bull market range suggesting that the primary up trend is likely to be over.

We will monitor if further damage is inflicted on the chart and provide an update in due course.

More information

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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.

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