Technical analysis: 21 September 2018

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
21 September 2018, 9:30 AM

Regis Resources (RRL) – tactical buy

RRL has been trading in a correction mode over the past two months which is still technically intact. A small bullish divergence between the price and the RSI indicator has formed on the daily chart suggesting that the price is likely to bounce in the short term. The weekly RSI indicator has reached oversold levels suggesting that the correction is likely to be near completion.

The initial upside price target is $4.50. Over the long term, levels to $4.80 are achievable. 

Saracen Mineral (SAR) – tactical buy

SAR has been trading in a correction mode over the past three months which is likely to reverse direction soon. The recent short term down swing has retraced to its long term up trend line crossing at $1.70 where initial buying interest is likely to arise. The RSI indicator has broken above its bear market resistance suggesting that higher prices are likely to unfold in the near term.

The first potential upside price target is $2.10 however higher levels are achievable over the medium term.

OceanaGold (OGC) – ready to break resistance

OGC has been trading sideways over the past year fluctuating between $3.08 and $4.23. The current price action is testing its multiple resistance level which is likely to be broken upwards. The momentum indicators remain constructive and support our positive view on the stock over the medium term.

The initial upside price target based on the breakout is $4.60 however the price may overshoot.

Northern Star (NST) – buy on weakness

NST has been trading in a strong up trend over the past two years with Thursday’s price action posting a fresh all-time high of $9.25. The RSI and the MACD indicators have reached overbought territory suggesting that the price is vulnerable to a short term pull back. Over the long term, we continue to like the stock and we see such potential short term share price weakness as a buying opportunity. We would be looking to accumulate the stock in the low $8.00.

The potential upside price target is $9.50. 

Newcrest Mining (NCM) – further strength

NCM has been trading sideways over the past year fluctuating between $18.57 and $24.27. The short term down trend line has been broken upwards recently suggesting that the correction from the July 2018 high is likely to be over and that higher prices are likely to unfold in the months ahead. The RSI and the MACD indicators have turned positive from oversold territory also pointing to a bounce from here.

The first potential upside price target is $21.20 however this level could be exceeded.  

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.

  • Print this page
  • Copy Link