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Technical Analysis: 16 November 2018

Violeta Todorova

Woodside Petroleum (WPL) – accumulate

WPL has been trading in a correction mode since October 2018 which is still technically intact. The recent price action has retraced to its 61.80% Fibonacci retracement ratio crossing at $32.10 where support is likely to hold.

The MACD indicator has reached oversold territory and bullish divergences between the price, the RSI and the stochastic indicators have formed on the daily chart. This suggests that a rebound is likely to unfold soon.

The potential upside price target is $35.00.  

Oil Search (OSH) – tactical buy

OSH has been trading in a correction mode since October 2018 which is still technically intact. The current price has retraced to its 61.80% Fibonacci retracement ratio crossing at $7.30 where support is likely to hold.

The momentum indicators have reached oversold territory and we note two bullish divergences between the price, the RSI and the stochastic indicators. This suggests that the price is likely to bounce in the short term.

We are comfortable to buy the stock at current price levels with potential upside price target of $8.25. 

BHP Billiton (BHP) – accumulate

In our last update on November 4, 2018 we discussed the proximity to resistance and the likelihood of the price pulling back in the short term. The expected weakness is currently underway and is approaching its key support of $30.70 where strong buying interest is likely to arise. The RSI and the stochastic indicators have reached oversold territory suggesting that the price is likely to bounce soon.

The potential upside price target is $34.00. 

Senex Energy (SXY) – tactical buy

SXY has been trading in a correction mode since October 2018 which is still technically intact. The price retraced to its previous support of $0.37 where buying interest is likely to arise.

The momentum indicators have reached oversold territory suggesting that the price is likely to bounce soon. A small bullish divergence has formed between the price and the RSI indicator adding further confidence that a rebound in the short term is likely.

We are very comfortable to buy at current price levels with a potential upside price target of $0.44. 

More information

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Disclaimer: 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.