Technical Analysis: 7 November 2018

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
07 November 2018, 9:11 AM

Stockland (SGP) – oversold

SGP has been trading in a down trend since May 2017 which at this point remains technically intact. The current pull back has retraced to the 50.00% Fibonacci retracement ratio measured from the 2008 low to the 2017 high (crossing at $3.50) where initial support is likely to arise. The RSI and the MACD indicators have reached strongly oversold territory suggesting that the price is likely to bounce again.

The potential upside price target is $3.90.

Mirvac Group (MGR) – approaching key support

MGR encountered resistance around its previous high of $2.54 and has been trading in a correction mode since September 2018. The current price action is approaching its key support of $2.00 where buying interest is likely to arise and we would be looking to accumulate. The RSI and the MACD indicators have reached oversold territory suggesting that the price is likely to bounce soon.

The initial upside price target is $2.25, however this level could be exceeded. 

Scentre Group (SCG) – close to key support

SCG has been trading in a secondary down trend since July 2018 which appears to be losing momentum. The recent price action retraced close to its key support of $3.70 which appears solid and is likely to hold. The down trend line on the RSI indicator has been broken upwards showing that momentum is improving. A higher high and higher low have formed on the daily chart suggesting that positive sentiment is returning.

We see a good probability of the price rising further in the month(s) ahead to $4.20. 

Goodman Group (GMG) – momentum is slowing

GMG has been trading in a strong primary up trend since March 2009 which is still technically intact. A large bearish divergence between the price and the RSI indicator has formed throughout May 2018 and September 2018 showing that momentum is slowing down. A lower high formed on the daily chart in October 2018 suggesting that the price is likely to take a breather in the month(s) ahead.

We are keeping an eye on support of $9.85 as a break below that price is likely and could trigger further weakness to $9.00.

Charter Hall Retail REIT (CQR) – close to resistance

The rally from the February 2018 low has lost momentum over the past few months and the price has been trading sideways, fluctuating between $4.03 and $4.41. The current upswing is (again) approaching resistance at $4.41 where initial selling pressure is likely to be encountered again.

The RSI indicator remains within the boundaries of its sideways market, therefore we favour further consolidation in the months ahead.

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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