Technical Analysis: 26 November 2018
About the author:
- Author name:
- By Violeta Todorova
- Job title:
- Senior Technical Analyst
- Date posted:
- 26 November 2018, 8:03 AM
Telstra Corporation (TLS) – bearish breakout
The rally from the June 2018 low has lost momentum over the past three months and the price has been trading sideways within the boundaries of a bearish descending triangle. Friday’s price action broke below support of $2.97 and has confirmed the pattern, which suggests that lower prices are likely to unfold in the weeks ahead.
The potential downside price target is $2.70. Over the long term, the stock continues to trade in a down trend and at this point there is no sign of reversal.
National Tyre & Wheel (NTD) – oversold
NTD has been trading in a downward trajectory since February 2018 which is still technically intact. The current down swing intensified over the past two weeks and has reached an all-time low of $0.51 where initial support is likely to hold. The RSI and the MACD indicators have reached strongly oversold territory, suggesting that the price is likely to bounce in the short term.
The potential short term upside price target is $0.61. Over the medium term, the price is likely to build a base and trade sideways between $0.51 and $0.68.
Smiles Inclusive (SIL) – oversold
SIL has been trading in a down trend since April 2018 which is still technically intact. The current down swing has intensified over the past month and has reached an all-time low of $0.39 where initial support is likely to hold. The RSI and the MACD indicators have reached extremely oversold territory suggesting that the price is likely to bounce in the short term.
The initial upside price target is $0.46. Over the medium term, the price is likely to trade sideways, fluctuating between $0.39 and $0.55.
Alliance Aviation Services (AQZ) – what correction?
AQZ has been trading in a strong up trend since April 2017 which is still technically intact. The up trend has lost momentum over the past month, but the share price has been resilient considering the general market weakness. Friday’s price action bounced from oversold territory suggesting that the price is likely to rally in the short term.
A break above resistance of $2.54 is likely, which will trigger a rally to $2.75.
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