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Blog

Technical Analysis: 8 February 2019

Violeta Todorova

Treasury Wine Estates (TWE) – target reached

In our update on January 10, 2019 we discussed the likelihood of the price being in the process of building a base and that higher prices were likely to unfold in the near term. The price broke above resistance of $15.12 as expected and our initial upside price target of $16.50 has now been reached.

The weekly and daily charts remain constructive suggesting that higher prices are achievable in the months ahead. In the very short term, the price may experience a mild pull back as the daily momentum indicators have reached overbought territory.

Brambles (BXB) – approaching resistance

In our last update on October 11, 2018 we discussed the implications of the bearish breakout and our downside price target of $10.00 was reached in December 2018. The price bottomed at $9.82 and a strong rally unfolded over the past two months. The current price is approaching its resistance of $11.75 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.

QUBE Holdings (QUB) – target reached

In our last update on October 29, 2018 we discussed that the stock was close to its key support of $2.13 and was in accumulation territory. A strong rally has unfolded over the past three months and our initial upside price target of $2.45 has now been greatly exceeded.

The current price action is approaching a band of resistance between $2.89 and $2.98 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 might be limited. 

Atlas Arteria (ALX) – approaching resistance

ALX has been trading higher since early January 2019 and the current upswing is still in progress. The stock is approaching a band of resistance between $7.04 and $7.26 where initial selling pressure may arise.

The RSI and the MACD indicators are approaching overbought territory suggesting that the near term upside from here is likely to be limited.

Orocobre (ORE) – building a base

In our last update on December 28, 2018 we discussed the oversold nature of the stock and the likelihood of the price bouncing in the short term. The expected bounce did occur and our upside price target of $3.50 was reached in less than two weeks. Since then the stock took a breather and the price appears to have been in the process of building a small base. A break above minor resistance of $3.59 is likely and could trigger higher prices in the weeks ahead.

The potential upside target based on the expected breakout is $4.00.

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.