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Technical update: 25 May 2018

Violeta Todorova

Motorcycle Holdings (MTO) – building a base

The decline from the January 2018 high appears to have lost momentum and the price is currently in the process of building a small base. The medium term down trend line on the leading RSI indicator has been broken upwards, showing that the sellers are losing momentum and that higher prices are likely to unfold in the month(s) ahead. A break above minor resistance of $3.53 is likely and will confirm that a new up trend has started.

The first potential upside price target based on the breakout is $3.90. Over the long term, price levels are achievable. We will keep providing updates in due course.

Change Financial (CCA) – tactical buy

In our update on March 29, 2018 we discussed the likelihood of the price trading higher and recommended clients buy the stock at $0.77. A strong rally has unfolded throughout April 2017 and our updated price target of $1.10 has been reached. The price pulled back over the past three weeks but Thursday's bounce suggests that the price is likely to rally in the weeks ahead.

The first potential upside price target is $1.00. Over the medium term, higher prices are achievable.

Wagners (WGN) – building a base

The decline from the February 2018 high has lost momentum over the past month and the price appears to have been in the process of building an ascending triangle. The pattern has bullish implications and points to higher prices in the near term. A break above resistance of $4.02 is likely and will trigger a strong wave of buying.

The potential upside price target based on the breakout is $4.30. We are comfortable accumulating the stock at current price levels.

Perseus Mining (PRU) – tactical buy

PRU has been trading in an upward trajectory since July 2017 which is still technically intact. The RSI indicator has turned positive from oversold territory suggesting that the price is likely to rally in the short term. The first potential upside price target is $0.48. Over the medium term, levels to $0.56 are achievable.

The current price provides a great opportunity to buy the stock.

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.