Technical Analysis: 27 December 2019

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
27 December 2019, 12:46 PM

Domino’s Pizza (DMP) – Approaching key resistance

DMP has been trading sideways over the past two years, fluctuating between $35.30 and $57.80.

The rally from the August 2019 low is approaching its key resistance of $57.80 where initial selling pressure is likely to arise.

A large bearish divergence between the price and the RSI indicator has formed over the past three months, showing that momentum is deteriorating. Given the proximity to key resistance and the deteriorating momentum conditions, we are of the view that the near term upside form here is likely to be limited.

Stavely Minerals (SVY) - Accumulate

SVY has been trading in a correction mode since November 2019 which is still technically intact.

The price retraced to its previous support of $0.82 where initial buying interest is likely to arise.

The RSI and the MACD indicators have reached oversold territory suggesting that the price is likely to bounce in the short term. Given the proximity to minor support and the oversold momentum conditions, we are comfortable to start accumulating. The first potential upside price target is $1.00 followed by $1.10.

Panoramic Resources (PAN) - Buy

In our last update on December 20, 2019 we discussed number of bullish developments on the daily chart and the likelihood of the price rallying in the short term.

The price bounced strongly earlier in the week reaching and exceeding our price target of $0.40.

Friday’s price action gapped down after the market update from Independence Group (IGO) outlining it plans to let its hostile bid for PAN expire on January 17, 2020. The price declined to a multiple level of support and the RSI indicator reached oversold levels. We see today’s weakness as another opportunity to buy the stock. Our upside price target remains unchanged at $0.40.

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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