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Technical analysis: 11 April 2019

Violeta Todorova

Cleanaway Waste Management (CWY) – Double top

CWY has been trading in an up trend since September 2015 which is still technically intact. The current medium term up swing has lost momentum and a small double top pattern appears to be forming on the daily chart.

A triple bearish divergence between the price and the RSI indicator has formed over the past two months showing that momentum is deteriorating.

Given the overbought and deteriorating momentum conditions we are of the view that the price is due for a pull back in the short term.

AMP Ltd (AMP) – Building a base

AMP has been trading in a steep down trend since March 2018 which is still technically intact. The down trend has lost momentum since October 2018 with the price marking marginally lower lows, showing that buying interest is building up around $2.00. A large bullish divergence between the price and the RSI has formed on the daily chart showing slight improvement in momentum.

The medium-term down trend line from the January 2019 high has been broken upwards yesterday, suggesting that the price is likely to rise in the months ahead.

The initial upside price target is $2.40, however the price may overshoot.

Orocobre (ORE) – Building a base

ORE has been trading in a down trend since January 2018 which is still technically intact. The down trend has lost momentum over the past two months and the price has been trading sideways, fluctuating between $2.91 and $4.04. The recent short term upswing has rebounded to its static and dynamic resistance around $4.00, where initial selling pressure is likely to arise.

The RSI and the stochastic indicators have turned lower from overbought territory suggesting that the price is likely to pull back in the short term.

A potential weakness to $3.20 would provide a good buying opportunity.

Brickworks (BKW) – Oversold

In our last update on March 14, 2019 we discussed the overbought and diverging momentum conditions and the likelihood of the price declining in the short term. Since our update the price dropped more than 11.00% pushing the RSI and the MACD indicators into oversold territory.

While at this point there is no clear sign that the down swing is complete, the price is approaching its first level of support at $16.18 where initial buying interest is likely to arise.

The initial upside price target is $18.00.

G.U.D. Holdings (GUD) – Approaching key support

GUD has been trading in a down trend since August 2018 which is still technically intact. The current short term down swing is approaching its key support of $10.45 where initial buying interest is likely to arise.

The RSI and the MACD indicators have reached oversold territory and a small bullish divergence between the price and the stochastic indicator has formed on the daily chart. These suggest that the price is likely to bounce soon.

The initial upside price target is $12.50.

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.