Technical Analysis: 19 February 2019
About the author:
- 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.
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