Technical update: 12 June 2018

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
12 June 2018, 9:57 AM

Boral (BLD) – accumulate

BLD has been trading in a downward trajectory since February 2018 which is still technically intact. Although at this point the decline is still in progress, we note an improvement in the daily momentum conditions, which suggests that the price might be approaching a turning point. The weekly RSI indicator has reached oversold territory, pointing to higher prices in the months ahead.

The potential upside price target is $7.00. We would be looking to accumulate the stock around $6.20.

Bubs Australia (BUB) – improvement in momentum

BUB has been trading sideways over the past three months, fluctuating between $0.72 and $0.85. The RSI indicator broke above its sideways market range suggesting that higher prices are likely to unfold in the near term. A break above minor resistance of $0.85 will confirm that buying interest is building up and is likely to trigger higher prices in the short term.

The potential upside price target is $0.98.

Apollo Tourism & Leisure (ATL) – double blessed buy

The decline from the February 2018 high has lost momentum over the past month and the price has been trading sideways and building a base. The RSI indicator broke above its bear market resistance suggesting that higher prices are likely to unfold in the month(s) ahead. A break above minor resistance of $1.68 is likely and will suggest that a new secondary up trend is underway.

The first potential upside price target based on the breakout is $1.90.

Nanosonics (NAN) – target reached

In our last update on February 26, 2018 we discussed the likelihood of the price trading higher in the near term and recommended clients buy the stock at $2.62. A strong rally has unfolded over the past month and our initial price target of $2.80 has now been reached and exceeded.

While the stock is overbought in the short term and vulnerable to a pull back, we see a possibility of the price overshooting to $3.20 in the month(s) ahead.

Cleanaway Waste Management (CWY) – target reached

In our last update on April 16, 2018 we discussed the likelihood of the price trading higher in the near term and recommended clients buy the stock at $1.45. A strong rally has unfolded over the past month and our upside price target of $1.65 has now been reached.

While at this point there is no reversal signal evident on the daily chart, we note that momentum is deteriorating and we are of the view that the price is likely to take a breather in the near term.

More information

Morgans clients can login to view all recent technical analysis on companies we cover by browsing the research section and filtering by 'technical analysis' in the Market Updates section. If you are interested in finding out more, please contact your nearest Morgans office.

Disclaimer(s): Morgans Corporate Limited was lead manager and underwriter to the share placement and rights issue for Apollo Tourism & Leisure Limited and received fees in this regard. 

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.

  • Print this page
  • Copy Link