Technical Analysis: 17 June 2019

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
17 June 2019, 10:01 AM

Spark Infrastructure (SKI) – target reached

In our last update on April 12, 2019 we discussed that support of $2.12 is likely to hold and the likelihood of the price bouncing in the short term. A strong rally has unfolded over the past month and our initial upside price target of $2.30 has now been reached and exceeded. The current upswing is approaching its resistance of $2.53 where initial selling pressure may arise.

We note a slight improvement in the momentum conditions, which suggests that the price may overshoot.

Coca-Cola Amatil (CCL) – approaching resistance 

CCL has been trading in an up trend since March 2019 which is still technically intact. The current upswing is approaching its resistance of $10.50 where initial selling pressure is likely to arise. A small bearish divergence between the price and the RSI indicator has formed on the daily chart suggesting that the price is likely to pull back soon.

Given the proximity to resistance and the overbought and diverging momentum conditions, we are of the view that the near term upside from here is likely to be limited. 

Coles Group (COL) – overbought

COL has been trading sideways since listing, fluctuating between $11.13 and $13.37. The current upswing has rebounded to its resistance where initial selling pressure is likely to arise. A small bearish divergence between the price and the RSI indicator has formed on the daily chart and the short term stochastic indicator has reached overbought territory.

Given the proximity to key resistance and the overbought and diverging momentum conditions, we are of the view that the price is vulnerable to a short term pull back. 

Regis Resources (RRL) – ready to take off 

In our last update on May 16, 2019 we discussed that we like the stock on a medium term basis and recommended clients buy on a pull back between $4.40 and $4.50. The expected pull back declined to $4.35 twice and provided a great buying opportunity. The medium term down trend line on the RSI indicator has been broken upwards and the weekly and daily momentum indicators are pointing higher. This suggests that the price is likely to follow suit and an upward breakout appears imminent.

Our previous upside price target of $5.40 now seems conservative and we believe the price could easily overshoot to $5.60.

NEXTDC (NXT) – approaching resistance 

The decline from the June 2018 high has lost momentum over the past ten months and the price has been trading sideways, fluctuating between $5.65 and $7.25. The current upswing is approaching its resistance of $7.25 where initial selling pressure is likely to arise. The RSI and the MACD indicators have approached overbought territory suggesting that the price is likely to pull back soon.

Given the proximity to resistance and the overbought momentum conditions, we are of the view that the near term upside from here is likely to be limited. 

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.

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