Technical Analysis: 12 December 2019
About the author:
- Author name:
- By Violeta Todorova
- Job title:
- Senior Technical Analyst
- Date posted:
- 12 December 2019, 1:32 PM
AP Eagers (APE) – Double Blessed Buy
After posting a record high of $14.49 In September 2019 the stock reversed course and the price has been trading in a correction mode over the past three months.
The price retraced close to its previous resistance and its 61.80% Fibonacci ratio crossing at $9.00 where support is likely to be encountered in the short term.
A small bullish divergence between the price and the RSI indicator has formed on the daily chart suggesting that the price is likely to bounce in the short term. The medium term down trend line on the leading RSI indicator has been broken upwards, showing that momentum is improving. The first potential upside price target is $11.00.
Central Petroleum (CTP) – Accumulate
CTP has been trading in a slow but consistent up trend over the past two years which
is still technically intact.
The current secondary correction retraced to its dynamic support from its long term
up trend line crossing at $0.14 where buying interest is likely to arise.
The price is close to its multiple static support of $0.125 which appears solid and is
likely to holds once again. The only ingredient needed is an improvement in
momentum, but we think this is on the cards. We see the proximity to static and
dynamic support and the oversold momentum readings as an opportunity to
accumulate the stock around current price levels. The initial upside price target is
Link Administration Holdings (LNK) – Double Blessed Buy
LNK has been trading in a primary down trend since February 2018 which is still
The down swing from the May 2019 high has lost momentum and the price has been
in a recovery mode over the past five months.
The current price is close to support of $5.46 from where the stock is likely to bounce.
The RSI indicator has turned higher from oversold territory also supporting this view.
The first potential upside price target is $6.00, followed by $6.50 over the medium
Western Areas (WSA) – Double Blessed Buy
The down trend from the April 2018 high has lost momentum and the price has been
trading sideways throughout January 2019 and August 2019 building a large base.
In September 2019 a strong and decisive breakout above key resistance of $2.56
occurred confirming that a new secondary up trend is now underway.
The recent pull back retraced close to its breakout point of $2.56 where strong buying
interest is likely to arise. The RSI and the MACD indicators have turned higher from
oversold territory suggesting that the price is likely to rise in the coming months. The
initial upside price target is $3.30.
Woodside Petroleum (WPL) – Target reached
In our last update on September 20, 2019 we discussed the likelihood of the price
being in the process of building a small base and recommended clients buy the stock
A strong rally has unfolded over the past few months and our initial upside price target
of $34.00 has now been reached.
Although, the weekly momentum indicators are approaching overbought territory, the
long term chart remains constructive and we see a good probability of the secondary
up trend extending further. The next potential upside price target is $36.00.
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