Technical update: 8 January 2018
About the author:
- Author name:
- By Violeta Todorova
- Job title:
- Senior Technical Analyst
- Date posted:
- 08 January 2018, 8:46 AM
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.
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Disclaimer(s): Analyst may own shares in some or all of the companies mentioned.
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