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Technical Analysis: 15 February 2019

Violeta Todorova

Amcor (AMC) – overbought

AMC has been trading in an upward trajectory since October 2018 which is still technically intact. The current upswing is approaching its key resistance of $15.37 where initial selling pressure is likely to arise.

The RSI and the MACD indicators have reached strongly overbought territory suggesting that the near term upside from here is likely to be limited and that the price is vulnerable to short term weakness.

The A2 Milk Company (A2M) – target reached

In our last update on October 8, 2018 we discussed the likelihood of the price trading higher in the near term and recommended clients accumulate the stock at $9.64. A strong rally has unfolded over the past few months and our initial upside price target of $11.00 has been reached and greatly exceeded. The current up swing has rebounded to its band of resistance between $13.21 and $13.78 where initial selling pressure is likely to arise.

The RSI and the MACD indicators have reached overbought territory suggesting that the near term upside from here is likely to be limited. Active traders may consider lightening positions.

IPH Limited (IPH) – at resistance

IPH has been trading in an up trend since March 2018 which is still technically intact. The up trend has lost momentum over the past four months and the price has been trading sideways, fluctuating between $4.85 and $6.17. The current short term upswing has rebounded close to its previous resistance where initial selling pressure is likely to arise.

The RSI and the stochastic indicators have reached overbought territory suggesting that the price may pull back in the short term. Over the medium term, our view on the stock is neutral and we favour further consolidation in the months ahead.

Praemium (PPS) – tactical buy

The decline from the September 2018 high has lost momentum over the past two months and the price has been trading sideways, fluctuating between $0.56 and $0.79. The current short term down swing has retraced close to its key support of $0.54 where initial buying interest is likely to arise.

A triple 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 initial upside price target is $0.68, however the price may overshoot.

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.