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Technical Analysis: 12 April 2019

Violeta Todorova

DuluxGroup (DLX) – target reached

In our last update on December 13, 2018 we discussed the oversold momentum conditions, the proximity to key support and the likelihood of the price bouncing in the near term. The price rallied almost 14% since our update and our initial upside price target of $7.10 has now been reached and exceeded.

While at this point there is no reversal signal evident on the daily chart, the stock is close to a band of resistance between $7.59 and $7.70 where initial selling pressure is likely to arise.

Coles Group (COL) – short term weakness

COL has been trading in a downward trajectory since listing which is still technically intact. The current short term upswing has rebounded to its down trend line crossing at $12.30 where initial selling pressure is likely to arise.

The RSI indicator has turned lower from overbought territory suggesting that the price is vulnerable to a short term pull back. 

Select Harvests (SHV) – approaching resistance

SHV has been trading in an upward trajectory since October 2018 which is still technically intact. The current upswing is approaching its key resistance of $7.49 where strong selling pressure is likely to arise. The momentum indicators have reached overbought territory suggesting that the price is likely to pull back soon.

Given the proximity to key resistance and the overbought momentum conditions we are of the view that the near term upside from here is likely to be limited.

Spark Infrastructure (SKI) – approaching support

The down trend from the July 2017 high has lost momentum over the past year and the price has been trading sideways, fluctuating between $2.12 and $2.53. The current downswing is approaching its key support of $2.12 where initial buying interest is likely to arise. The RSI indicator is approaching oversold territory suggesting that the price is likely to bounce soon. The initial price target is $2.30.

Over the medium term, our view on the stock is neutral and we favour further sideways trading in the months ahead.

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.