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Technical Analysis: 8 November 2018

Violeta Todorova

Macquarie Group (MQG) – target reached

In our last update on October 14, 2018 we discussed then oversold nature of the stock and the likelihood of the price bouncing in the short term. A strong rally has unfolded over the past week and our initial upside price target of $122.00 has now been reached.

While the current rally could extend further in the near term, we see potential selling pressure arising around the previous resistance of $129.87. 

Superloop (SLC) – tactical buy

SLC has been trading in a down trend since September 2016 which is still technically intact. The current down swing has retraced close to its all-time low of $1.67 where strong buying interest is likely to arise. The RSI and the MACD indicators have turned positive from strongly oversold levels suggesting that the price is likely to rally in the short term.

The initial upside price target is $2.00 however this level could be exceeded.

Carsales.com (CAR) – accumulate

In our update on August 20, 2018 we discussed the likelihood of the price finding resistance around $15.60 and recommended clients trim positions around that level. A strong decline unfolded over the past two months pushing the weekly and daily RSI indicator into oversold territory.

The current decline retraced to a cluster of Fibonacci retracement crossing at $11.50 where support appears solid and is likely to hold. Although at this juncture there is no sign the correction is reversing, based on the oversold momentum readings and the potential Fibonacci support, we are comfortable to start accumulating at current price levels.

The initial upside price target is $13.50. 

CYBG PLC (CYB) – accumulate

CYB has been trading in a correction mode since August 2018 which is still technically intact. Wednesday’s price action retraced close to its band of support between $4.19 and $4.34 where strong buying interest is likely to arise. The momentum indicators have reached oversold territory and we note a bullish divergence between the price and the RSI indicator. This suggests that a strong rebound is likely to unfold in the near term.

The first potential upside price target is $5.00. Over the medium term, higher price levels are achievable. We are comfortable to start accumulating the stock at current price levels. 

More information

Morgans clients can login to view all recent technical analysis on companies we cover by browsing the research section and filtering by 'technical analysis' in the Market Updates section. If you are interested in finding out more, please contact your nearest Morgans office.

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.