Technical Analysis: 19 October 2018

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
19 October 2018, 8:40 AM

Cooper Energy (COE) – target reached

In our last update on April 12, 2018 we discussed the likelihood of the price trading higher and recommended clients buy the stock at $0.32. A strong rally has unfolded over the past month and our second upside price target of $0.50 has been reached on Thursday.

While at this point there is no sign the secondary up trend is over, we note that the current price is close to a band of resistance between $0.51 and $0.57, which suggests that the near term upside from here is likely to be limited.

REA Group (REA) – target reached

In our last update on September 7, 2018 we discussed the bearish implications from the divergence and highlighted the likelihood of a pull back unfolding in the short term. A strong decline has unfolded over the past month and our second downside price target of $75.00 has now been reached.

The stock is oversold on a daily basis which may trigger a short term bounce to $80.00, but overall we don’t see clear signs yet that the correction is complete.

Aust Securities Exchange (ASX) – target reached

In our last update on September 9, 2018 we discussed the bearish implications from the double top pattern and warned clients that further weakness is looming. A strong decline has unfolded over the past month and our downside price target of $61.50 has now been reached. The RSI and the MACD indicators have reached strongly oversold territory pointing to a likely bounce in the short term.

The potential upside price target is $61.00 - $62.00.

Ramsay Health Care (RHC) – bearish breakout

In our last update on September 29, 2018 we discussed that the RSI indicator remains firmly in the bear market range which shows that selling pressure still prevails. The discussed support of $53.01 has now been broken pointing to a likely further weakness.

Our downside price target remains unchanged at $49.00 - $50.00. Overall, the primary down trend remains intact and at this point there are no signs of potential reversal.

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.

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