Technical Analysis: 26 November 2018

About the author:

Violeta Todorova
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. 

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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