Technical Analysis: 16 August 2019

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
16 August 2019, 5:07 PM

Woodside Petroleum (WPL) – approaching key support

WPL has been trading sideways over the past year, fluctuating between $ 29.33 and $39.38.

The current down swing is approaching its band of support between $28.38 and $29.33 where initial buying interest is likely to arise.

The weekly RSI indicator is approaching oversold territory suggesting that the current decline is likely to be arrested soon.

We would be looking to accumulate the stock around $29.00.

Amcor (AMC) – lowering our target to $14.00

In our update on May 5, 2019 we discussed the overbought and diverging nature of the stock and the likelihood of $16.78 to act as a resistance.

In a follow up note on June 7, 2019 we highlighted the bearish implications from the head and shoulders pattern and our downside price target of $15.15 has now been reached.

While the stock reached oversold territory on Wednesday, which points to a likely bounce in the short term, we see a good probability of the price declining further in the months ahead.

Therefore, we lower our medium term price target to $14.00. 

APA Group (APA) – bearish breakout

APA has been trading in a strong upward trajectory since December 2018 which now appears to be losing momentum.

A small bearish descending triangle pattern has formed over the past two months showing that the sellers are stepping in.

Wednesday’s price action broke below minor support of $10.71 suggesting that a secondary correction is now underway.

The potential downside price target based on the breakout is $9.70.  

 

REA Group (REA) - target reached

In our last update on May 19, 2019 we discussed the bullish implications based on the technical breakout and highlighted the likelihood of the price trading higher to $95.00. A strong rally has unfolded over the past few months and our price target has now been reached and exceeded.

Tuesday’s price action posted a record high of $105.74 and formed bearish divergences on the weekly and daily charts.

This development shows deterioration in the momentum conditions, therefore we recommend active clients trimming positions. 

InvoCare (IVC) – bearish breakout

IVC has been trading in an up trend since January 2019 which now appears to be reversing course.

Wednesday’s price action broke below support of $14.83 suggesting that a new secondary down trend has started.

The initial downside price target based on the breakout is $13.00, however over the medium term lower price levels are likely to unfold. 

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: Analyst owns shares in: EFACustomAnalystPosn. 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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