Technical Analysis: 10 January 2019
About the author:
- Author name:
- By Violeta Todorova
- Job title:
- Senior Technical Analyst
- Date posted:
- 10 January 2019, 2:00 PM
Fortescue Metals (FMG) – closing our tactical buy
In our last update on September 20, 2018 we discussed the oversold momentum conditions and the likelihood of the price rallying in the near term and recommended clients buy the stock at $3.79. A slow but consistent rally has unfolded over the past few months with our position being in the money most of the time. Our first price target of $4.20 has been reached in November and the current price is close to our medium term target of $4.80.
While we see an improvement in momentum conditions and the price could trade above $5.00 in the months ahead, the stock is oversold on a daily basis, therefore we close our tactical buy.
Treasury Wine Estate (TWE) – building a base
TWE has been trading in a correction mode since September 2018 which is still technically intact. The pull back has lost momentum over the past month and the price has been trading sideways, fluctuating between $13.38 and $15.12.
Given the higher lows forming on the daily chart (a sign that buying pressure is building up) we are of the view that a break above resistance of $15.12 is likely. The potential upside price target based on the anticipated breakout is $16.50.
Crown Resorts (CWN) – building a base
CWN has been trading in a correction mode since August 2018 which is still technically intact. The pull back has lost momentum over the past month and the price has been trading sideways, fluctuating between $11.43 and $12.15
The stock is oversold on a weekly basis and we are of the view that a break above $12.15 is likely, which could trigger a rally to $12.80.
Pendal Group (PDL) – building a base
In our last update on December 6, 2018 we discussed the overbought momentum conditions and the likelihood of the price falling in the short term. A strong decline has unfolded over the past month as expected and our downside price target of $7.30 has now been reached.
The marginally lower low posted last week, the proximity to key support of $7.19 and the oversold weekly momentum conditions suggests that the down trend which started back in May 2017 is likely to take a breather. Therefore, we see a good probability of the price trading higher to $8.70 in the short term.
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