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Blog

Technical update: 29 January 2018

Violeta Todorova

Pinnacle Investment Management Group (PNI) – target reached

In our last update on January 8, 2018 we discussed the likelihood of the price trading higher in the near term and recommended clients buy the stock at $3.85. A strong rally has unfolded over the past week and our upside price target of $4.20 has been greatly exceeded. The RSI and the MACD indicators have reached overbought territory suggesting that the price might pull back in the short term. Given the overbought momentum conditions we recommend that active clients take profits.

The trade generated a 26% return in just over two weeks.

Catapult Group International (CAT) – bullish breakout

The down trend from the July 2016 high has lost momentum over the past three months 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 over the medium term. The initial upside price target based on the breakout is $2.40.

Any short term pull back would provide a great buying opportunity.

Liquefied Natural Gas (LNG) – target reached

In our last update on November 27, 2017 we discussed the strong likelihood of the price trading higher in the short term. A strong rally has unfolded since early January 2018 and our initial upside price target of $0.60 has now been reached and exceeded. Although at this point there is no sign that the rally is over, we recommend active clients take profits.

The trade generated a 28% return in two months.

Kogan.com (KGN) – buy

KGN has been trading in a strong up trend since June 2017 which is still technically intact. The latest short term up swing has lost momentum over the past month and the price has been trading sideways within the boundaries of an imperfect ascending triangle. The momentum indicators remain constructive and firmly in the bull market range suggesting that higher prices are likely to unfold in the months ahead.

The potential upside price target is $7.80.

Stockland (SGP) – buy

SGP has been trading sideways over the past year fluctuating between $4.03 and $4.13. The current short term down swing is approaching its band of support where initial buying interest is likely to arise. The momentum indicators are in oversold territory suggesting that the price is likely to bounce soon. We are comfortable accumulating the stock around the current price.

The potential upside price target is $4.60.

More information

Morgans clients can login to access all recent technical analysis on companies we cover. 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.