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Technical Analysis: 15 October 2018

Violeta Todorova

Westpac Banking Corp (WBC) – short term bounce

WBC has been trading in a down trend since April 2015 which is still technically intact. The recent price action broke below key support of $27.57 showing that sentiment and momentum are still poor. The stock is oversold on a daily basis and close to oversold levels on a weekly basis, therefore we are likely to see a rebound in the short term.

The potential upside price target is $27.50 - $28.00. Over the long term, we don’t see a reversal of the primary down trend yet and we will keep a close eye for tentative signs of potential bottom formation.

Commonwealth Bank (CBA) – short term bounce

CBA has been trading in a down trend since March 2015 which is still technically intact. The recent price action broke below key support of $69.22 showing that despite the prolonged weakness the sentiment remains poor and the sellers still prevail. The stock is oversold on the daily chart and is close to oversold levels on the weekly chart pointing to a likely bounce in the short term.

The potential upside price target is $70.00 - $71.00. Over the long term, we don’t see a reversal of the primary down trend, therefore the stock is not out of danger yet. 

ANZ Banking Group (ANZ) – short term bounce

ANZ has been trading in a down trend since May 2017 which is still technically intact. The RSI and the MACD indicators have reached oversold territory suggesting that the price is likely to bounce in the short term.

The initial upside price target is $27.00. The weekly momentum conditions are poor and at this point we only favor a short term rebound. 

National Australia Bank (NAB) – short term bounce

NAB has been trading in a down trend since May 2017 which is still technically intact. The weekly RSI indicator remains below its long term down trend line showing that selling pressure prevails. The daily RSI and MACD indicators have entered oversold territory suggesting that the price is likely to bounce soon.

The initial upside price target is $27.00. At present we don’t see a reversal of the primary down trend and we only favor a relief rally. 

Macquarie Group (MQG) – short term bounce

MQG has been trading in a strong primary up trend which is still technically intact. The recent break below minor support of $121.55 suggests that the stock is in a secondary correction, therefore the price is likely to take a breather in the month(s) ahead. The RSI and the MACD indicators have reached oversold territory pointing to a likely bounce in the short term.

The initial upside price target is $122.00.   

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.