Technical Analysis: 7 December 2018

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
07 December 2018, 8:52 AM

Link Administration (LNK) – accumulate

LNK has been trading in a downward trajectory since August 2018 which is still technically intact. The recent short term down swing has encountered buying interest around its previous support of $6.73 which is likely to build in the near term. The RSI indicator is approaching oversold territory suggesting that the price is likely to bounce soon.

The potential upside price target is $7.30.

Pendal Group (PDL) – further weakness

PDL has been trading in a down trend since May 2017 which is still technically intact. The RSI indicator has turned down from overbought territory suggesting that the price is likely to fall in the weeks ahead. The potential downside price target is $7.30.

Overall, the momentum conditions remain poor and at this point we don't see a reversal of the down trend.

G8 Education (GEM) – short term weakness

GEM has been trading in a strong secondary up trend since late October 2018 which is still technically intact. The current short term up swing has rebounded close to its previous key support of $3.12 where initial selling pressure is likely to arise. A small bearish divergence between the price and the RSI indicator has formed on the daily chart suggesting that the price is vulnerable to a pull back in the short term.

The potential downside price target is $2.60.

IPH Limited (IPH) – approaching resistance

The correction from the October 2018 high reversed course and the price has been trading in an upward trajectory over the past two weeks. The current price action is approaching its resistance of $6.13 where selling pressure is likely to arise. The RSI indicator is approaching overbought territory suggesting that the near term upside from here is likely to be limited.

Active clients may consider lightening positions.

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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