Technical Analysis: 30 November 2018

About the author:

Violeta Todorova
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.

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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