Technical update 19 June 2018

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
19 June 2018, 11:03 AM

Pendal Group (PDL) – buy around $9.50

PDL has been trading within the boundaries of a down trend channel over the past year which is still technically intact. A higher low appears to be forming on the daily chart showing that buying interest is building up. Given the improvement in the price structure, we see a good probability of the price rebounding to its down trend line crossing at $11.80.

We would be looking to buy the stock around $9.50.

CML Group (CGR) – double blessed buy

CGR has been trading in an up trend over the past two years which is still technically intact. The up trend has lost momentum over the past three months and the price has been trading sideways within the boundaries of an imperfect ascending triangle. The pattern has bullish implications and points to higher prices over the medium term. 

The first potential upside price target is $0.65 however higher price levels are achievable over time.

Bank of Queensland (BOQ) – building a base

BOQ has been trading in a downward trajectory since October 2017 which is still technically intact. The latest short term down swing has retraced to its previous key support of $9.70 which appears solid and is likely to hold. The RSI indicator has completed a bottom reversal pattern suggesting that higher prices are likely to unfold in the month(s) ahead. 

The initial upside price target is $11.20 however over the long term higher prices are achievable.

Otto Energy (OEL) – buy

OEL has been trading in a strong up trend over the past year which is still technically intact. The current short term down swing has retraced to its long term up trend line crossing at $0.06 where initial buying interest is likely to arise. The RSI indicator has reached oversold territory suggesting that the price is likely to bounce soon. The first potential upside price target is $0.067 followed by $0.08 in the months ahead.

Given the proximity to its dynamic support and the oversold momentum conditions we are comfortable accumulating at current prices.

Catapult Group International (CAT) – buy around $1.20

The down trend from the July 2016 high has lost momentum over the past three months and the price has been trading sideways and building a small base. The higher lows on the daily chart are an encouraging sign and shows that buying interest is building up. A subsequent break above resistance of $1.38 is likely which will trigger higher prices in the months ahead. The first potential upside price target is $1.50, followed by $2.00 over the longer term. 

We would be looking to buy the stock around $1.20.

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 a Joint Lead Manager for the placement of shares in CML Group 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.

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