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Blog

Technical Analysis: 19 November 2018

Violeta Todorova

Apollo Tourism & Leisure (ATL) – accumulate

ATL has been trading in a down trend since February 2018 which is still technically intact. The current price has retraced close to its band of support between $1.18 and $1.27 where initial buying interest is likely to arise. Given the proximity to key support and the oversold momentum readings we are comfortable to start accumulating around current price levels.

The first potential upside price target is $1.50. Over the medium term, higher prices are achievable. 

LendLease Group (LLC) – close to key support

LLC has been trading in a down trend since August 2018 which is still technically intact. The current down swing has retraced close to its key support of $11.48 which appears strong and is likely to hold. The weekly and daily momentum indicators have reached oversold territory suggesting that the current decline is likely to be arrested soon.

We are comfortable to start accumulating below $13.00. The potential medium term upside price target is $15.00.

People Infrastructure (PPE) – bearish breakout

In our last update on October 25, 2018 we discussed the implications from the bearish divergence and highlighted that the price is likely to decline in the short term. A pull back has unfolded over the past few weeks and our downside price target of $2.00 has now been reached. Friday’s price action broke below support of $1.96 suggesting that further weakness is likely in the weeks ahead.

The potential downside price target is $1.70. 

ERM Power (EPW) – close to resistance

EPW has been trading in an up trend since June 2018 which is still technically intact. The current up swing has approached its key resistance of $1.85 where selling pressure is likely to arise. The stochastic indicator has reached overbought territory suggesting that the price is likely to pull back in the short term.

Given the proximity to key resistance and the overbought momentum readings we believe that the near term upside from here is likely to be limited. 

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.