Technical Analysis: 15 April 2019

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
15 April 2019, 10:01 AM

Telstra Corporation (TLS) – approaching our first target

In our last update on January 31, 2019 we discussed the likelihood of the price declining in the short term and recommended clients buy the stock around $3.00. The expected pull back has unfolded to $3.00 and has provided a great buying opportunity. A strong bounce has unfolded since then and the current price action is approaching our first target of $3.40 where initial resistance is likely to arise. We are still of the view that TLS is in the process of building a large base and that a subsequent break above key resistance of $3.40 is likely.

Our medium term upside price target of $3.60 remains unchanged.

Megaport Limited (MP1) – target reached

In our last update on April 4, 2019 we discussed the likelihood of the price bouncing in the short term and recommended clients buy the stock at $4.05.  A strong rally has unfolded over the past two weeks and our upside price target of $4.50 has now been reached. Friday's price action broke above its key resistance of $4.56 suggesting that higher prices are likely to unfold over the long term.

The initial upside price target based on the breakout is $5.00. In the short term, the price is likely to experience a pull back, which we see as a buying opportunity.

Commonwealth Bank (CBA) – heading higher

CBA has been trading in a down trend since March 2015 which is still technically intact. While at this point there is no sign that the down trend is reversing course, we note that the October 2018 low was only marginally lower, which shows that buying interest is building up. The higher lows on the daily chart are an encouraging sign and momentum conditions have improved slightly. The RSI indicator has completed a bottom reversal pattern on Friday suggesting that higher prices are likely to unfold in the near term.

The potential upside price target is $75.00.

ANZ Banking Group (ANZ) – heading higher

ANZ has been trading in a down trend since April 2015 which is still technically intact. The current pull back pushed the daily momentum indicators into oversold territory which suggests that the price is likely to rebound in the near term. The RSI indicator appears to be forming a double bottom pointing to a likely rise from here.

The potential upside price target is $27.50.

Westpac Banking Group (WBC) – heading higher

WBC has been trading in a down trend since April 2015 which is still technically intact. Higher lows have formed on the daily chart over the past four months showing that buying interest is building up. The RSI indicator has approached oversold territory suggesting that the price is likely to bounce soon.

The initial upside price target is $27.50.

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.

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