Technical update: 9 March 2018

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
09 March 2018, 8:06 AM

Adairs (ADH) – tactical buy

ADH has been trading in an up trend since June 2017 which is still technically intact. The current short term pull back has retraced close to its previous support of $1.89 where initial buying interest is likely to arise. The RSI indicator has approached oversold territory suggesting that the price is likely to bounce soon. We are comfortable accumulating the stock at current price levels.

The potential upside price target in the short term is $2.20.

Fortescue Metals Group (FMG) – tactical buy

FMG has been trading in a downward trajectory since February 2017 which is still technically intact. The current short term down swing has approached its key support of $4.51 where initial buying interest is likely to arise. The RSI and the stochastic indicators have reached oversold territory suggesting that the price is likely to bounce in the short term. We are comfortable accumulating the stock at current price levels.

The potential upside price target in the short term is $5.30.

Orora (ORA) – double blessed buy

ORA has been trading in an up trend since August 2017 which is still technically intact. The recent short term pull back has retraced close to its previous support of $3.25 where initial buying interest is likely to arise. The stochastic indicator has turned positive from oversold territory suggesting that the price is likely to bounce in the near term.

The potential upside price target is $3.60.

Mineral Deposits (MDL) – double blessed buy

MDL has been trading in a strong up trend over the past year which remains firmly intact. The rally took a breather over the past month and the price has been consolidating within the boundaries of a small symmetrical triangle. Thursday's price action broke upwards showing that buying pressure is building up.

The potential upside price target based on the breakout is $1.40.

IPH Limited (IPH) – tactical buy

IPH experienced a sharp sell off over the past month and has retraced close to its all-time low of $2.96 where buying interest is likely to arise. The momentum indicators have reached strongly oversold territory and bullish divergences have formed between the price, the RSI and the stochastic indicators. This suggests that there is good probability the price will bounce in the short term to unwind the oversold momentum conditions.

The potential upside price target in the short term is $3.80. Over the medium term, the price is likely to track sideways, fluctuating between $3.20 and $4.00.

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.

  • Print this page
  • Copy Link