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Technical Analysis: 11 January 2019

Violeta Todorova

Rio Tinto (RIO) – approaching resistance

The up trend from the May 2017 low has lost momentum over the past seven months and the price has been trading sideways, fluctuating between $69.41 and $87.09. The current short term up swing is approaching its band of resistance between $83.16 and $87.09 where selling pressure is likely to arise. The momentum indicators are close to overbought territory suggesting that the near term upside from here is likely to be limited.

Over the medium term, our view on the stock is neutral and we favour further consolidation in the months ahead.

Magellan Financial Group (MFG) – close to resistance

MFG has been trading sideways over the past two years fluctuating between $21.80 and $29.52. The current short term up swing is approaching its key resistance where strong selling pressure is likely to arise. The RSI indicator is close to overbought territory suggesting that the short term upside from here is likely to be limited.

Over the medium term, our view on the stock is neutral and we favour further consolidation in the months ahead.

Corporate Travel Management (CTD) – buy around $20.00

The down trend from the September 2018 high has lost momentum over the past two months and the price has been trading sideways, fluctuating between $19.20 and $24.68. While the higher low on the daily chart is an encouraging development, the momentum indicators remain in neutral territory, therefore we are of the view that the price will continue to trade sideways in the weeks ahead.

A pull back in the low $20.00's is likely to unfold in the short term, which would present a good buying opportunity.

New Hope Corporation (NHC) – close to resistance

The up trend from the June 2017 low has lost momentum over the past three months and the price has been trading sideways, fluctuating between $3.09 and $4.04. The current short term up swing is approaching its resistance where selling pressure is likely to arise. The RSI and the stochastic indicators are close to overbought territory, suggesting that the near 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 consolidation in the months ahead.

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.