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Technical update: 5 January 2018

Violeta Todorova

Monash IVF (MVF) – close to target

In our last update on November 30, 2017 we discussed the likelihood of the price bouncing in the short term and recommended clients buy the stock at $1.26. The expected rally has unfolded over the past few weeks and the current price action is trading close to our price target of $1.45. Although at this point there is no sign the rally is reversing, the RSI and the stochastic indicators are approaching overbought territory, therefore we recommend active clients take profits.

The trade generated a 9.5% return in one month.

Redflow (RFX) – heading higher

The decline from the June 2016 high has lost momentum over the past three months and the price has been trading sideways and building a large base. Thursday's price action broke above resistance of $0.155 suggesting that a bottom is in place now. The first potential upside price target based on the breakout is $0.20, however over the medium term the price may overshoot to $0.25.

Any short term share price weakness would provide a buying opportunity.

Sg Fleet Group (SGF) – buy

The up trend from the December 2016 low 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. A break above resistance of $4.33 is highly likely and will trigger a rally to $4.60.

We are comfortable buying the stock at current price levels.

Perpetual (PPT) – tactical buy

The decline from the August 2017 high has lost momentum over the past month and the price has been trading sideways building a small base. Thursday's price action broke above resistance of $48.98 suggesting that higher prices are likely to unfold in the months ahead.

The initial upside price target based on the breakout is $53.00. Over the long term, higher prices are achievable.

Freedom Oil and Gas (FDM) – tracking well

In our last update on November 16, 2017 we discussed the likelihood of the price declining in the short term and recommended clients buy the stock in the low $0.20s. The price declined to $0.205 as expected and provided a great opportunity to add to our existing long positions. We see further evidence that the primary up trend is unfolding well and our long term upside price target of $0.52 remains unchanged. We see any further short term share price weakness from here as a buying opportunity.

Our near term upside price target is $0.36.

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.