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Technical Analysis: 29 November 2018

Violeta Todorova

Paradigm Biopharmaceutical (PAR) – overbought

PAR has been trading in a strong up trend since April 2018 which is still technically intact. The rally accelerated over the past week with Wednesday’s price action posting a record high of $1.29. The RSI, the MACD and the stochastic indicators have reached overbought territory suggesting that the price is vulnerable to a pull back in the short term.

The potential downside price target is $1.00. 

Mirvac Group (MGR) – heading higher

MGR has been trading sideways over the past two years with the price fluctuating between $1.98 and $2.54. The current down swing is losing downside momentum and appears to have been in the process of building a base. This view is supported by the higher low which formed on the daily chart in November 2018. A break above minor resistance of $2.27 is likely and will trigger a rally in the weeks ahead.

The initial upside price target is $2.40 however this level could be exceeded. 

Inghams (ING) – overbought

ING has been trading in a strong up trend since listing which is still technically intact. The current price is approaching its all-time high of $4.54 where initial selling pressure is likely to arise. The RSI and the MACD indicators have reached overbought territory suggesting that the price is vulnerable to a short term pull back.

Given the proximity to resistance and the overbought momentum conditions, we see the near term upside from here as limited. 

Link Administration Holdings (LNK) – at support

LNK has been trading in a downward trajectory since August 2018 which is still technically intact. The current down swing has retraced to its key support of $6.73 where initial buying interest is likely to hold. The RSI and the MACD indicators have reached oversold territory suggesting that the price is likely to bounce in the short term. Given the proximity to support and the oversold momentum readings we are comfortable to start accumulating around current price levels.

The potential upside price target is $7.50. 

Bapcor (BAP) – short term bounce

BAP has been trading in a downward trajectory since September 2018 which is still technically intact. A higher low appears to be forming on the daily chart which shows that buying interest is building up. The RSI and the MACD indicators have reached oversold territory suggesting that the price is likely to bounce in the short term.

The potential upside price target is $6.60. 

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.