Technical Analysis: 18 January 2019
About the author:
- 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.
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