Technical update: 22 January 2018

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
22 January 2018, 8:06 AM

ResMed Inc (RMD) – tracking well

RMD has been trading in a primary up trend over the past year which is still firmly intact. The up trend has lost momentum over the past two months and has been trading sideways, fluctuating between $10.78 and $11.49. The momentum indicators are constructive and we favour higher prices over the medium term.

The potential upside price target is $11.70.

Flight Centre Travel (FLT) – heading higher

The up trend from February 2017 has lost momentum over the past five months and the price has been trading sideways, fluctuating between $43.07 and $49.87. Friday's price action broke (on an intra-day basis) above resistance of $49.87 showing that buying interest is building up. A decisive break on a closing basis is likely to follow and will confirm the continuation of the primary up trend. 

The potential long term upside price target is $53.00.

Stockland (SGP) – accumulate around $4.10

SGP has been trading sideways over the past year, fluctuating between $4.03 and $4.98. The current short term down swing is approaching its band of support between $4.03 and $4.13, where buying interest is likely to arise. The momentum indicators have reached oversold territory suggesting that the price is likely to bounce soon. We would be looking to start accumulating the stock around $4.10.

The potential medium term upside price target is $4.60.

APN Outdoor (APO) – tactical buy

APO has been trading sideways over the past seven months, fluctuating between $4.18 and $5.05. The current short term down swing is approaching its band of support between $4.18 and $4.42 where initial buying interest is likely to arise. The RSI indicator has 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 at current price levels.

The potential upside price target is $4.95.

GrainCorp (GNC) – short term bounce

GNC has been trading in a down trend over the past seven months which is still technically intact. The current short term down swing has retraced to its previous low of $7.46 where initial buying support is likely to hold. The RSI and the stochastic indicators have turned positive from oversold territory, suggesting that the price is likely to bounce in the short term.

The first potential upside price target is $8.00 followed by $8.40.

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.

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