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Technical Analysis: 25 October 2018

Violeta Todorova

Atlas Arteria (ALX) – deterioration in momentum

ALX has been trading in an up trend since February 2018 which now appears to be losing momentum. The leading RSI indicator broke below its bull market support showing that momentum is deteriorating. A lower low and a lower high is now forming on the daily chart suggesting that the up trend is likely to take a breather. The stochastic indicator is turning lower from overbought territory pointing to a likely pull back in the short term.

The potential downside price target is $6.30.

People Infrastructure (PPE) – at resistance

PPE has been trading in an up trend since listing which is still technically intact. A bearish divergence between the price and the RSI indicator has formed on the daily chart, suggesting that the up trend is likely to take a breather. The current short term up swing has rebounded close to its all-time high of $2.28 where initial selling pressure is likely to arise. The stochastic indicator has reached overbought territory pointing to a likely pull back in the short term.

The potential downside price target is $2.00.

Domino's Pizza (DMP) – at resistance

DMP has been trading in an upward trajectory since April 2018 which is still technically intact. The current short term up swing has rebounded to its resistance of $57.80 where initial selling pressure is likely to arise. The RSI and the stochastic indicators have reached overbought territory suggesting that the price is likely to pull back in the short term.

The potential downside price target is $50.00.

Motorcycle Holdings (MTO) – at key support

MTO has been trading in a down trend since January 2018 which is still technically intact. The current short term down swing has retraced to its all-time low of $2.30 where initial support is likely to hold. The momentum indicators have reached oversold territory suggesting that the current decline is likely to be arrested soon.

We will be monitoring for tentative signs of bottom formation and will provide an update in due course.

CYBG PLC (CYB) – approaching support

CYB has been trading in a down trend since August 2018 which is still technically intact. The current impulsive short term down swing has broken a number of key support levels showing that the selling pressure is strong.

Despite being oversold the price is likely to correct further and re-test its band of support between $4.15 and $4.34, where the selling pressure is likely to cool off.

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.