Technical Analysis: 30 November 2018
About the author:
- Author name:
- By Violeta Todorova
- Job title:
- Senior Technical Analyst
- Date posted:
- 30 November 2018, 8:50 AM
Boral Limited (BLD) – overbought
BLD has been trading in a down trend since February 2018 which is still technically intact. The latest down swing has retraced close to its key support of $4.76 (weekly chart) where buying interest is likely to arise. The RSI and the MACD indicators have reached oversold levels on a weekly and daily basis suggesting that the price is likely to rebound in the short term.
The potential upside price target is $5.80. Over the long term, we don't see a reversal of the down trend and at this point we only favor a bounce to unwind the oversold momentum readings.
Rio Tinto (RIO) – at key support
The up trend from the February 2018\6 low has lost momentum over the past six months and the price has been trading sideways, fluctuating between $9.47 and $87.09. The current down swing has approached its key support of $69.47 and $87.09. The current down swing has approached its key support of $69.47 where initial buying interest is likely to arise. The RSI indicator has approached oversold territory suggesting that price is likely to bounce soon.
The potential short term upside price target is $78.00. As long as key support of $69.47 holds our view on the stock is neutral and we favor the further consolidation in the months ahead.
Crude Oil – oversold
Crude oil has been trading in a steep downward trajectory over the past two months inflicting significant technical damage on the daily and weekly charts. The long term up trend channel (see weekly chart below) has been broken downwards and the weekly RSI indicator broke below its long term up trend line, both suggesting that the up trend from the February 2016 low is over. The weekly and daily RSI indicator has reached oversold territory suggesting that a corrective bounce is likely to unfold in the short term.
The initial upside price target is US$56.00, however this level could be exceeded.
Oil Search (OSH) – double blessed buy
OSH has been trading in a downward trajectory since early October 2018 which is still technically intact. The current down swing has approached its support of $6.99 where initial buying interest is likely to arise. A small bullish divergence between the price and the RSI indicator has formed over the past three weeks, suggesting that the price is likely to bounce soon.
The potential upside price target is $8.00.
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