Technical Analysis: 11 February 2019

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
11 February 2019, 10:19 AM

National Australia Bank (NAB) – short term weakness

NAB has been trading in a down trend since May 2017 which is still technically intact. The current short term upswing has approached a band of resistance between $25.23 and $26.05 where initial selling pressure is likely to arise.

The stochastic indicator is approaching overbought territory pointing to a likely pull back in the short term. The RSI indicator is in neutral territory suggesting that the stock could trade sideways in the months ahead.

Santos (STO) – short term weakness

STO has been trading in a strong upward trajectory since late December 2018, which appears to be reversing direction. The RSI and the MACD indicators have reached overbought territory suggesting that the price is vulnerable to a short term pull back.

Over the medium term, the price is likely to continue to trade sideways with the price fluctuating between $5.50 and $6.50.

Aust Securities Exchange (ASX) – approaching resistance

ASX has been trading in a strong upward mode over the past seven weeks which is still technically intact. The current price action is approaching its all-time high of $68.91 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.

Pendal Group (PDL) – short term weakness

The down trend from the May 2017 high has lost momentum over the past four months and the price has been trading sideways, fluctuating between $7.37 and $8.86. The RSI indicator has rebounded to its resistance showing that the stock is overbought. The current short term up swing has rebounded to its minor resistance of $8.30 where initial selling pressure may arise.

Given the proximity to resistance and overbought momentum levels, we are of the view that the short term upside from here is likely to be limited.

GrainCorp (GNC) – close to resistance

After gapping up strongly in December 2018 the price lost momentum and has been trading sideways, fluctuating between $8.75 and $9.80. The current up swing has approached its resistance of $9.80 where initial selling pressure is likely to arise. The RSI and the stochastic indicators have reached overbought territory suggesting that the price is vulnerable to a short term pull back.

Over the medium term, our view on the stock is neutral and we favour further consolidation in the months ahead.

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.

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