Technical Analysis: 5 April 2019

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
05 April 2019, 7:55 AM

Adairs (ADH) – approaching support

The decline from the September 2018 high has lost momentum over the past four months and the price has been trading sideways, fluctuating between $1.52 and $2.19. The current short term down swing is approaching support of $1.52 where initial buying interest is likely to arise. The RSI indicators are in oversold territory suggesting that the price is likely to bounce soon. We would be looking to accumulate the stock in the low $1.50's.

The initial upside price target is $1.80. Over the medium term, levels to $2.00 are achievable.

Fortescue Metals Group (FMG) – overbought

FMG has been trading in a strong up trend since September 2018 with the price posting a 10-year high of $7.89 on April 3, 2019. Bearish divergences between the price, the RSI and the MACD indicators have formed on the daily chart suggesting that the price is vulnerable to a pull back from here. The weekly momentum conditions are strongly overbought, also pointing to likely weakness in the short term.

The current strength in the share price provides a good opportunity to lighten positions.

South32 (S32) – approaching resistance 

S32 has been trading in an upward trajectory since December 2018 which is still technically intact. The current price action is approaching a band of resistance between $4.07 and $4.28 where selling pressure is likely to arise.

Any further short term strength from here would provide a good opportunity to lighten positions.

WH Soul Pattison (SOL) – approaching support

The up trend from the October 2017 low has lost momentum over the past five months and the price has been trading sideways, fluctuating between $24.03 and $31.87. The current short term down swing is approaching its key support of $24.03 where initial buying interest is likely to arise. The RSI and the MACD indicators are entering oversold territory suggesting that the price is likely to bounce soon.

We see a good opportunity to accumulate the stock in the range between $24.00 - $25.00. The potential upside price target is $27.00.

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