Stockbroking | Wealth Management | Corporate Advice

x

Resizing text on the web

To increase or decrease the magnification of a web page, press Ctrl and '+' (plus) to zoom in or Ctrl and '-' (minus) to zoom out. To return the page to its original size, press Ctrl + 0.

You can also scroll the mouse wheel up and down while holding Ctrl to increase/decrease zoom level.

Blog

Technical update: 16 March 2018

Violeta Todorova

Newcrest Mining (NCM) – losing momentum

NCM has been trading sideways over the past year, fluctuating between $19.26 and $25.33, and has significantly underperformed other stocks from the sector. The momentum indicators are approaching oversold territory suggesting that the price is likely to bounce in the short term to $21.00. Given the recent gap down we are of the view that the price will be under pressure in the coming months and is likely to trade sideways between $19.00 and $21.00.

Given the recent deterioration in momentum conditions we will monitor key support of $19.26 closely, as a subsequent break below that price could trigger further weakness to $18.00.

Highfield Resources (HFR) – tactical buy

The down trend from the January 2016 high has lost momentum over the past nine months and the price has been trading sideways, fluctuating between $0.76 and $1.20. The current short term down swing has approached its key support of $0.76 where initial buying interest is likely to arise. The momentum indicators are close to oversold territory pointing to a likely bounce in the short term.

The initial upside price target is $1.00 although higher prices are achievable in the months ahead.

Fortescue Metals Group (FMG) – tactical buy

The decline from the September 2017 high has lost momentum over the past three months and the price has been trading sideways, fluctuating between $4.52 and $5.46. The current short term down swing has declined close to its key support where initial buying interest is likely to arise. The momentum indicators have reached oversold territory suggesting that the price is likely to bounce in the short term.

The initial upside price target is $5.30.

Vocus Communications (VOC) – tactical buy

The down trend from the May 2016 high has lost momentum over the past year and the price has been trading sideways in a wide range. The current short term down swing has retraced to its key support of $2.23 where initial buying interest is likely to arise. The RSI and the MACD indicators have bounced from oversold territory suggesting that the price is likely to rise in the near term.

The potential upside price target in the short term is $2.80. Over the medium term, higher price levels are achievable.

Super Retail Group (SUL) – short term bounce

SUL has been trading in a down trend since November 2013 which remains technically intact. The fall of the current down swing has accelerated last month with the price marking a large gap. The weekly and daily momentum indicators have reached oversold levels, suggesting that the price is due for a bounce to unwind the oversold momentum conditions. Given the proximity to key support of $6.70 and the oversold and diverging momentum conditions the price is likely to bounce in the short term.

The initial upside price target is $7.40.

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): 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.