Technical Analysis: 18 January 2019

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
18 January 2019, 1:02 PM

Brickworks (BKW) – accumulate around $15.00

In our last update on December 6, 2018 we discussed the likelihood of selling pressure arising around $17.69 and recommended clients trim positions. The price consolidated within the boundaries of a bearish descending triangle over the past month with recent price action finally giving in and breaking below support of $16.31.

While the price is likely to drop further in the short term, over the medium term, our view on the stock is neutral and we favour further consolidation in the months ahead. We will be looking to accumulate the stock around $15.00. The potential upside price target is $16.20.

ERM Power (EPW) – close to resistance

EPW has been trading sideways over the past year, fluctuating between $1.25 and $1.85. The current short term up swing has approached its band of resistance between $1.80 and $1.85 where initial selling pressure is likely to arise.

The RSI indicator is close to overbought territory suggesting that the near term upside from here is likely to be limited. Over the medium term, the momentum indicators remain firmly in the sideways market range, therefore we favour further consolidation in the months ahead.

Transurban Group (TCL) – close to resistance 

In our update on September 16, 2018 we discussed that support of $10.79 is solid and the price is likely to rebound in the months ahead. A strong rally has unfolded since October 2018 and our upside price target of $11.80 has now been reached.

The current price action is close to its resistance of $12.21 where initial selling pressure is likely to arise. The momentum indicators remain in the sideways market range, therefore we are of the view that the price will continue to trade sideways in the months ahead.

QBE Insurance Group (QBE) – approaching resistance 

The down trend from the May 2017 high has lost momentum over the past seven months and the price has been trading sideways, fluctuating between $9.28 and $11.80. While at this point the current short term up swing is still in progress, it is fast approaching its band of resistance between $11.25 and $1.65 where initial selling pressure may arise. The momentum indicators remain in the sideways market range, therefore we favour further consolidation over the medium term.

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.

  • Print this page
  • Copy Link