Technical Analysis: 18 June 2019

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
18 June 2019, 1:35 PM

Cleanaway Waste Management (CWY) – Bullish breakout

CWY has been trading in a strong up trend since September 2015 which is still technically intact. The up trend took a breather over the past three months and the price traded sideways within the boundaries of an ascending triangle. Monday’s price action decisively broke above resistance of $2.34 suggesting that higher price levels are likely to unfold in the near term.

The potential upside price target based on the breakout is $2.50. 

Baby Bunting (BBN) – Tactical buy

BBN has been trading sideways over the past ten months, fluctuating between $1.95 and $2.63. The current short term downswing has retraced close to its support which appears solid and is likely to hold. The RSI and the stochastic indicators have turned positive from oversold territory suggesting that the price is likely to bounce in the short term. The potential upside price target is $2.40.

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

Bapcor (BAP) – Approaching support

BAP has been trading in a down trend since September 2018 which is still technically intact. The current downswing is approaching a band of support between $4.83 and $5.32 where strong buying interest is likely to arise. The momentum indicators are approaching oversold territory suggesting that the price is likely to bounce soon.

Our ideal entry is in the range between $5.20 and $5.30. The potential upside price target is $5.90. 

Crown Resorts (CWN) – Approaching support 

CWN has been trading sideways over the past year, fluctuating between $11.23 and $14.59. The decline from the April 2019 high is approaching its band of support between $10.80 and $11.23 where initial buying interest is likely to arise. The RSI and the MACD indicators have reached oversold territory suggesting that the price is likely to bounce soon.

We would be looking to accumulate the stock around $11.20. The potential medium term upside price target is $12.80. 

Collins Foods (CKF) – Overbought

CKF has been trading in a strong up trend over the past year which is still technically intact. The rally accelerated from the beginning of the year and the recent upswing has reached an all-time high of $8.60. The weekly and daily momentum indicators have reached overbought territory suggesting that the price is vulnerable to a short term pull back. Bearish divergences between the price, the RSI and the MACD indicators have formed on the daily chart, suggesting that the rally is likely to take a breather.

Given the overbought and diverging momentum conditions, active traders may consider using the current share price strength to trim positions.

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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