Technical Analysis: 19 February 2019

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
19 February 2019, 6:26 PM

Smart Group (SIQ) – target reached

In our last update on February 3, 2019 we discussed the likelihood of strong selling pressure arising around $10.63 and a pull back unfolding in the short term to unwind the overbought momentum conditions. The price declined over the past few weeks and our downside price target of $9.00 has now been reached.

The current down swing is approaching a band of support between $7.70 and $8.39 where initial buying interest is likely to arise.

South32 (S32) – approaching resistance

S32 has been trading in an upward trajectory since mid December 2018 which is still technically intact. The current upswing is approaching a band of resistance between $4.07 and $4.28 where initial selling pressure is likely to arise.

The RSI indicator has approached overbought territory suggesting that the near term upside from here is likely to be limited and that the price is likely to pull back soon.

Vocus Group (VOC) – at resistance 

VOC has been trading sideways over the past two years fluctuating between $2.11 and $3.75. The current medium term upswing has rebounded to its key resistance of $3.75 where initial selling pressure is likely to arise. The RSI indicator is approaching overbought territory suggesting that the short term upside from here is likely to be limited and 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 sideways trading in the months ahead.

Superloop (SLC) – building a base

SLC has been trading in a downward trajectory since August 2018 which is still technically intact. A large bullish divergence between the price and the RSI indicator has formed on the daily chart showing that momentum is improving significantly. A higher low has formed over the past week which is the first positive sign since the decline started and shows that buying interest is building up. A break above minor resistance of $1.56 is likely and could trigger a rally to $1.80 in the short term.

Over the longer term, higher price levels are achievable.

Northern Star (NST) – short term weakness 

NST has been trading in a strong up trend over the past two years which is still technically intact. Monday’s price action broke above its previous resistance and posted an all-time high of $9.97. While at this point there is no sign that the short term upswing is over, the stochastic indicator has reached overbought territory suggesting that the price is vulnerable to a pull back.

Over the long term, we continue to like the stock and we see such potential short term share price weakness as a buying opportunity.

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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