Technical Analysis: 7 January 2019
About the author:
- Author name:
- By Violeta Todorova
- Job title:
- Senior Technical Analyst
- Date posted:
- 07 January 2019, 8:22 AM
JB Hi-Fi (JBH) – bearish breakout
JBH has been trading sideways over the past two years, fluctuating between $21.20 and $29.47. Last week's price action decisively broke below its key support suggesting that lower prices are likely to unfold in the coming months.
The potential long term downside price target is $18.00. In the short term, the stock is oversold and is likely to rebound to $22.00 soon.
ResMed Inc (RMD) – taking a breather
RMD has been trading in a strong up trend over the past year which is still technically intact. The price encountered resistance around $16.00 for a third time, suggesting that the stock is likely to take a breather in the months ahead.
A break below minor support of $15.00 is possible and will trigger short term weakness to $14.00 where initial support is likely to hold.
CSL Ltd (CSL) – trapped in a range
CSL has been trading in a correction mode since September 2018 which is still technically intact. The correction has lost momentum over the past two months and the price has been trading sideways, fluctuating between $173.00 and $194.50.
As long as the price stays within the boundaries of its current consolidation, our view on the stock is neutral and we rate it a hold.
NEXTDC (NXT) – downside risk
In our last update on December 2, 2018 we discussed that resistance of $6.81 is solid and highlighted that strong selling pressure is likely to arise around that level. The stock has traded lower over the past month and the current price action is approaching its support of $5.61 which is an important level to watch.
At this point the leading indicators offer no early indications on which direction the share price will eventually break, but we are of the view that downside risk prevails.
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