Technical Analysis: 1 February 2019
About the author:
- Author name:
- By Violeta Todorova
- Job title:
- Senior Technical Analyst
- Date posted:
- 01 February 2019, 9:05 AM
Bellamy's Australia (BAL) – bullish breakout
In our update on August 17, 2018 we discussed the likelihood of the price bouncing in the short term and recommended clients buy the stock at $9.71. While the price did bounce and our first price target of $12.50 was reached fairly quickly, the rally was not sustained and the price resumed its prior downward trajectory.
Over the past three months the down trend has clearly lost momentum and the price has been trading sideways, fluctuating between $7.31 and $8.56. Thursday's price action broke above its resistance of $8.56 suggesting that higher prices are likely to unfold in the months ahead. The first potential upside price target based on the breakout is $10.40. Over the medium term, levels to $12.00 appear easily achievable.
Our buy recommendation came a bit too early and at this point we are still holding our long positions.
Charter Hall Group (CHC) – overbought
CHC has been trading in a strong up trend since November 2016 which is still technically intact. The weekly and daily momentum indicators have reached overbought territory suggesting that the stock is vulnerable to a short term pull back. The potential downside price target is $7.70 however this level could be exceeded.
The current share price strength presents a good opportunity for active traders to trim positions.
Dexus (DXS) – overbought
DXS has been trading in a strong up trend since February 2018 which is still technically intact. The weekly and daily momentum indicators have reached overbought territory suggesting that the stock is vulnerable to a short term pull back. The initial downside price target is $11.00 however this level could be exceeded.
Over the long term, the price rebounded close to its all-time high of $12.51, which is likely to act as a strong resistance for this stock.
Inghams (ING) – short term weakness
ING has been trading in a strong up trend since listing in November 2016 which is still technically intact. The current up swing has reached an all-time high of $4.69 where initial selling pressure is likely to arise. The RSI and the MACD indicators have reached overbought territory suggesting that the short term upside from here is likely to be limited.
The last bar on the daily chart is an open/close reversal suggesting that the price is vulnerable to a pull back in the short term.
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