Technical Analysis: 19 October 2018
About the author:
- 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.
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