Technical Analysis: 22 November 2018

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
22 November 2018, 8:54 AM

Sonic Healthcare (SHL) – heading higher

SHL has been trading in a correction mode since August 2018 which is still technically intact. The recent price action has retraced to its key support of $20.60 where buying interest is likely to arise. The RSI indicator broke above its medium term down trend line suggesting that higher prices are likely to unfold in the near term.

The initial upside price target is $23.60.

Stockland (SGP) – tactical buy

SGP has been trading in a downward trajectory since August 2018 which now appears to be losing momentum. The latest down swing has retraced to its 50.00% Fibonacci retracement ratio (measured from the March 2009 low to the August 2016 high) crossing at $3.50 where initial support is likely to hold. The down trend line on the leading RSI indicator has been broken upwards suggesting that higher prices are likely to unfold in the near term.

The potential upside price target is $3.90. 

Charter Hall Retail REIT (CQR) – at resistance

The up trend from the February 2018 low has lost momentum over the past four months and the price has been trading sideways, fluctuating between $4.03 and $4.42. The short term up swing has approached its band of resistance between $4.42 and $4.55 where selling pressure is likely to arise. The RSI and the MACD indicators have approached overbought territory suggesting that the price is likely pull back soon.

The potential downside price target is $4.10. 

GPT Group (GPT) – at resistance

GPT has been trading sideways over the past year, fluctuating between $4.58 and $5.53. The current up swing has approached its band of resistance between $5.39 and $5.58 where selling pressure is likely to arise. The up trend line on the RSI indicator has been broken downwards recently suggesting that the price is vulnerable to a pull back in the short term.

The initial downside price target is $5.00. 

Scentre Group (SCG) – short term bounce

SCG has been trading in a downward trajectory since July 2018 which appears to be reversing course. A number of higher highs and higher lows have formed on the daily chart showing that the price is building a base. The down trend line on the RSI indicator has been broken upwards suggesting that the price is likely to bounce in the near term.

The first potential upside price target is $4.10, however this level could be exceeded. 

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.

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