Technical Analysis: 23 November 2018

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
23 November 2018, 8:30 AM

Spark Infrastructure (SKI) – close to target

In our last update on September 30, 2018 we discussed the likelihood of the price rallying in the short term and recommended clients buy the stock at $2.24. Despite the general market weakness a strong rally has unfolded over the past month and the current price action is very close to our price target of $2.40. The RSI and the MACD indicators are approaching overbought territory suggesting that the near term upside from here is likely to be limited.

The price is close to a band of resistance between $2.44 and $2.50 where selling pressure is likely to arise. Therefore, we would be looking to close our tactical buy.  

Macquarie Group (MQG) – short term bounce

MQG has been trading in a correction mode since September 2018 which is still technically intact. The current short term decline has retraced to its support of $110.13 where buying interest is likely to arise. The stochastic indicator has reached oversold territory suggesting that the price is likely to bounce in the short term.

The potential upside price target is $120.00.

NEXTDC (NXT) – short term bounce

NXT has been trading in a correction mode since June 2018 which is still technically intact. The marginally lower highs and the bullish divergence on the daily chart show that the downside momentum is diminishing. The stochastic indicator has reached oversold territory suggesting that the price is likely to bounce in the short term.

The potential upside price target is $6.45. 

Cleanaway Waste Management (CWY) – buy

CWY has been trading in an up trend over the past two years which is still technically intact. The correction from the August 2018 high has clearly lost momentum over the past month and the price has been in the process of building a small base. The current price is close to its support of $1.68 where buying interest is likely to arise.

The potential upside price target is $1.90 - $1.95. 

Carsales.com (CAR) – improvement in momentum

CAR has been trading in a correction mode since August 2018 which is still technically intact. A small bullish divergence between the price and the RSI indicator has formed over the past month showing that the price is likely to bounce soon. The down trend line on the leading RSI indicator has been broken upwards recently and on Thursday a small bottom has been completed. Both developments show that momentum is improving.

Therefore, we see a good probability of the price rebounding to $13.00 in the weeks ahead. 

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: 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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