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Technical Analysis: 14 February 2019

Violeta Todorova

Stockland (SGP) – target reached

In our last update on November 22, 2018 we discussed the likelihood of the price trading higher in the short term and opened a tactical buy at $3.65 with a price target of $3.90. On Tuesday the price rebounded for a second time to $3.94 which is likely to act as a resistance in the near term.

The RSI and the MACD indicators are turning lower from overbought territory suggesting that the price is likely to pull back in the short term. The potential downside price target is $3.55.

Sydney Airport (SYD) – approaching support

In our last update on January 20, 2019 we discussed the likelihood of the price bouncing in the short term and recommended clients accumulate the stock around $6.30. The price has bounced strongly over the past two weeks and our upside price target of $6.90 has now been reached. Wednesday’s price action rebounded close to its resistance of $7.18 where initial selling pressure may arise.

The RSI and the stochastic indicators are close to overbought territory suggesting that the short term upside from here is likely to be limited.

Spark Infrastructure (SKI) – approaching support 

In our last update on January 13, 2019 we discussed the proximity to resistance, the overbought momentum conditions and the likelihood of the price pulling back in the short term. The expected pull back is currently underway and the current price action is approaching its key support of $2.12 where initial buying interest is likely to arise.

The RSI and the stochastic indicators are approaching oversold territory suggesting that the current down swing is likely to be arrested soon. Over the medium term, our view on the stock remains neutral and we favour further consolidation in the months ahead.

Cochlear (COH) – short term weakness

COH rebounded in late November 2018 and has been trading in an upward trajectory since then. While at present there is no clear sign the current up swing is complete, the leading RSI indicator completed a bearish descending triangle from overbought territory suggesting that the price is vulnerable to a short term pull back.

The MACD indicator is turning lower from overbought territory and a small bearish divergence between the price and the stochastic indicator has formed on the daily chart. These add further confidence that the stock is likely to decline in the short term.

Ingenia Communities (INA) – at key resistance

INA has been trading sideways over the past seven months fluctuating between $2.78 and $3.22. The current short term up swing has approached its resistance of $3.22 where initial selling pressure is likely to arise.

The RSI and the MACD indicators have approached overbought territory suggesting that the short term upside from here is likely to be limited. Over the medium term, our view on the stock is neutral and we favour further consolidation in the months ahead. Active traders may use the current strength to trim positions.

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.