Technical Analysis: 22 October 2018

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
22 October 2018, 7:52 AM

TPG Telecom (TPM) – accumulate

TPM has been trading in an upward trajectory over the past three months which is still technically intact. The current pull back has retraced to its previous minor support of $7.50 where initial buying interest is likely to arise. The RSI indicator has approached oversold territory suggesting that the price is likely to bounce soon.

The potential upside price target is $8.60. We are comfortable accumulating the stock at current price levels.

The Star Entertainment Group (SGR) – double blessed buy

SGR has been trading sideways over the past two years fluctuating between $4.65 and $6.40. The current pull back has retraced close to its key support of $4.65 where strong buying interest is likely to arise. The RSI and the MACD indicators have reached oversold territory suggesting that the price is likely to bounce soon. Given the proximity to key support and the oversold momentum readings we are comfortable buying the stock at current price levels.

The initial upside price target is $5.30. Over the long term, higher price levels are achievable.

Carsales.com (CAR) – accumulate

The up trend from the November 2016 low has lost momentum over the past ten months and the price has been trading sideways, fluctuating between $13.11 and $16.45. The current correction has retraced to its support where initial buying interest is likely to arise. The RSI and the MACD indicators have reached oversold territory suggesting that the price is likely to bounce soon. Given the proximity to support and the oversold momentum readings we are comfortable accumulating at current price levels.

The potential upside price target is $14.60.

Woodside Petroleum (WPL) – short term bounce

WPL has been trading in an up trend since February 2018 which is still technically intact. The current pull back has pushed the RSI and the stochastic indicators into oversold territory suggesting that the price is likely to bounce soon.

The initial upside price target is $38.50. Over the long term, higher price levels are achievable.

Caltex (CTX) – buy on a break above $30.45

CTX has been trading sideways over the past two years, fluctuating between $27.55 and $37.02. The current secondary down trend has retraced close to its key support which appears solid and is likely to hold.

A break above minor resistance of $30.45 will confirm that the correction is over and trigger a rally to $32.50.

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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