Technical Analysis: 20 June 2019
About the author:
- Author name:
- By Violeta Todorova
- Job title:
- Senior Technical Analyst
- Date posted:
- 20 June 2019, 8:28 AM
Tabcorp Holdings (TAH) – heading higher
TAH has been trading sideways over the past year, fluctuating between $4.09 and $4.95. The recent price action broke above its down trend line drawn from the April 2019 high suggesting that the downswing is likely to be complete. The RSI and the MACD indicators have turned positive from oversold territory, pointing to higher price levels in the month(s) ahead.
The potential upside price target is $4.90. Over the medium term, our view on the stock is neutral and we favour further consolidation.
The Star Entertainment Group (SGR) – heading higher
SGR has been trading in a down trend since February 2018 which is still technically intact. The recent gap down has pushed the daily and weekly momentum indicators into oversold territory suggesting that the price is due for a bounce in the short term. Wednesday's price action broke above minor resistance of $4.00, indicating that last week's gap is likely to be filled. This means that there is a good probability of the price rallying to $4.44 in the near term.
Overall, the long term trend remains down and at this point we only favour a short term rally.
Aristocrat Leisure (ALL) – heading higher
In our last update on May 30, 2019 we discussed that the up trend is still in play and that the price is likely to overshoot our $30.00 price target. The December 2018 rally is still in progress but we note that the weekly and daily momentum indicators have now entered overbought territory.
While the rally could extend further and re-visit its previous high of $33.06, we anticipate selling pressure to arise around that level.
Jumbo Interactive (JIN) – heading higher
JIN has been trading in a stellar up trend since September 2018 which is still technically intact. The recent price action broke above resistance of $17.82 suggesting that despite the overbought momentum conditions the rally is likely to continue.
The potential upside price target based on the break out is $20.50.
Macquarie Group (MQG) – tracking well
In our last update on May 13, 2019 we discussed the likelihood of the price declining further in the short term and recommended clients buy the stock around $115.00. The expected pull back unfolded to $114.35 and provided a great buying opportunity. The price has been rallying over the past two weeks and Wednesday's break above resistance of $123.29 suggests that the rally is likely to extend further.
The next potential upside price target is $129.50 however the price may overshoot.
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