Technical update: 13 September 2018

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
13 September 2018, 12:27 PM

Westpac Banking Corp (WBC) – short term bounce

The decline from the October 2017 high has lost momentum over the past three months and the price has been trading sideways, fluctuating between $27.24 and $30.44. The current short term down swing has approached its support where initial buying interest is likely to arise. The RSI and the MACD indicators have approached oversold territory suggesting that the price is likely to bounce soon.

The potential upside price target is $29.00. Long term support of $26.92 still holds and is the key level we will be monitoring in the coming months, as a break below it will have negative implications. 

Megaport Limited (MP1) – oversold

MP1 has been trading sideways over the past three months, fluctuating between $3.26 and $4.56. The current short term down swing has approached its key support of $3.26 where initial buying interest is likely to arise. The RSI and the stochastic indicators have reached oversold territory suggesting that the price is likely to bounce soon.

The initial upside price target is $3.90, however this level is likely to be exceeded. 

OZ Minerals (OZL) – accumulate

OZL has been trading in a down trend channel since June 2018 which is still technically intact. The current price action has retraced to its cannel line crossing at $7.90 which is also a static support for the stock. The RSI and the stochastic indicators have reached oversold territory suggesting that the price is likely to bounce soon.

The initial upside price target is $9.00. 

Emeco Holdings (EHL) – double blessed buy

The primary up trend has lost momentum over the past two months and the price has been trading sideways, fluctuating between $0.32 and $0.40. The recent short term down swing has retraced to its support where initial buying interest is likely to arise. The RSI and the stochastic indicators have reached oversold territory suggesting that the price is likely t5o bounce in the short term.

The potential upside price target is $0.38.

Copper – building a base

The correction from the June 2018 high has lost momentum over the past month and the price appears to have been in the process of building a small base. The leading RSI indicator has been trading within the boundaries of a bullish ascending triangle showing that momentum is improving. Given the proximity to key support of US$2.47, the higher low in the price formed this week and the bullish triangle in the RSI indicator, we are of the view that copper has a very good probability of rallying in the weeks ahead.

The potential upside price target is US$3.00.  

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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