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Blog

Technical update: 3 September 2018

Violeta Todorova

Over The Wire (OTW) – overbought 

OTW had a great run over the past year with last week’s price action posting a fresh all-time high of $4.69. The RSI and the MACD indicators have reached strongly overbought territory suggesting that the latest upswing is vulnerable to a pull back. Given the loss of momentum over the past three trading sessions and the overbought momentum conditions we believe the price is likely to take a breather and that the near term upside from here is limited.

While we do continue to like the stock over the long term, active investors may consider trimming positions.

Jumbo Interactive (JIN) – overbought

JIN had a spectacular run over the past two years with last week’s price action posting a record high of $6.75. The RSI and the MACD indicators have reached extremely overbought levels suggesting that the price is likely to pull back in the short term.

While we do continue to like the stock over the long term, given the huge price appreciation over the past month and the overbought momentum conditions, we recommend active clients trim positions. 

IPH Limited (IPH) – close to key resistance

IPH enjoyed a great run since March 2018 with the current price action approaching its multiple key resistance of $6.04. While at this point the price action and the momentum conditions on the daily chart remain constructive, we note that the weekly RSI and MACD indicators are in overbought territory. Given the proximity to key resistance and the overbought weekly momentum readings we are of the view that the near term upside from here is likely to be limited.

Active traders may consider trimming positions. 

Sundance Energy (SEA) – double blessed buy

SEA has been trading in an upward trajectory over the past year which remains technically intact. The recent pull back has retraced close to its static and dynamic support of $0.067 where initial buying interest is likely to arise. The RSI and the stochastic indicators have approached oversold territory suggesting that the price is likely to bounce in the short term.

The first potential upside price target is $0.08. Over the long term, levels to $0.12 are achievable. 

Flight Centre (FLT) – short term bounce

FLT has been trading in a strong up trend over the past year which experienced a sharp pull back last week. We note a few bearish divergences between the rice and the RSI indicator on the weekly and daily charts, which suggests that after such a strong run, the price is likely to take a breather in the months ahead. In the short term, the RSI and the MACD indicators are overbought pointing to a likely rebound in the short term.

The potential upside price target is $64.50. 

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.