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Blog

Technical update: 8 January 2018

Violeta Todorova

Telstra Corporation (TLS) – heading higher

The down trend from the August 2016 high has lost momentum over the past three months and the price has been trading sideways and building a base. The leading RSI indicator entered bull market territory suggesting that higher prices are likely to unfold in the month(s) ahead.

The bullish set up suggests that the price is likely to break above resistance of $3.75 and trigger a rally to $3.90. However, higher prices are achievable over the medium term.

ALS (ALQ) – tracking well

In our last update on December 11, 2017 we discussed the likelihood of support holding at $6.60 and a bounce to unfold in the month(s) ahead. Over the past month the price consolidated within the boundaries of a small ascending triangle and Friday's price action broke above minor resistance of $7.19, suggesting that higher prices are likely to unfold in the short term.

At this point in time our upside price target remains unchanged at $7.65.

BT Investment Management (BTT) – target reached

In our last update on December 17, 2017 we discussed the likelihood of the price trading higher in the short term and recommended clients buy the stock at $10.79. The expected rally has unfolded over the past few weeks and our initial upside price target of $11.70 has now been reached.

While the price is slightly overbought on a short term basis we see a probability of the price breaking above resistance of $11.70 and extending its rally to $12.40 in the month(s) ahead.

Pinnacle Investment Management Group (PNI) – buy

PNI has been trading in a strong primary up trend which is still firmly intact. The latest rally has lost momentum and over the past two months 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 in the months ahead. 

A break above resistance of $4.01 is highly likely and could trigger a rally to $4.20.

Pacific Energy (PEA) – buy

The correction from the May 2017 high has lost momentum over the past month and last week's price action has posted a higher low, showing that buying support is building up. The weekly momentum indicators have turned positive from oversold territory suggesting that the price is likely to trade higher in the near term. A break above minor resistance of $0.57 is highly likely and will trigger a rally to $0.63.

Over the long term, higher price levels are achievable.

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.