Technical Analysis: 1 March 2019

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
01 March 2019, 1:51 PM

Bingo Industries (BIN) – target reached

In our update on February 20, 2019 we discussed the likelihood of the price bouncing in the short term and recommended clients buy the stock at $1.21. A strong rally has unfolded over the past week and our second upside price target of $1.75 has now been reached. Thursday's price action appears to be an island reversal bar suggesting that resistance at $1.85 is likely to hold and the price could pull back in the short term.

While we do like the stock on a long term basis and the price could rise to $2.21 to fill up the recent gap, active traders may consider trimming positions as the price is vulnerable to a short term pull back.

Nufarm (NUF) – tactical buy

NUF has been trading in a down trend since May 2017 which is still technically intact. The daily RSI indicator completed a bottom reversal pattern suggesting that the price is likely to bounce in the short term. A bullish divergence between the price and the RSI indicator has formed on the weekly chart pointing to a likely short term rebound from here. Although at this point there is no sign that the primary down trend is over we are comfortable opening a tactical buy on the stock as there is a good probability of the price trading higher in the short term.

The potential upside price target is $5.70.

OZ Minerals (OZL) – target reached 

In our update on September 13, 2018 we discussed the likelihood of the correction being over and recommended clients buy the stock at $8.26. A strong rally has unfolded over the past two months and our medium term target of $10.50 has been reached and exceeded. The RSI indicator completed a top reversal pattern suggesting that the price is likely to pull back in the short term. 

The initial downside price target is $9.75. Over the long term, we continue to like the stock and we see the potential short term share price weakness as a buying opportunity.

QBE Insurance Group (QBE) – bullish breakout

QBE has been trading sideways since October 2017, fluctuating between $9.28 and $11.80. Monday's price action decisively broke above its key resistance of $11.80 suggesting that higher prices are likely to unfold over the medium term. The initial upside price target is $13.15, however this level could be exceeded.

The RSI and the MACD indicators have reached overbought territory suggesting that the price is vulnerable to a short term pull back. Such potential short term share price weakness would present a buying opportunity.

Ramsay Health Care (RHC) – overbought 

RHC has been trading in an upward trajectory since December 2018 which is still technically intact. The current up swing is approaching its resistance of $66.10 where initial selling pressure is likely to arise. The RSI indicator has reached strongly overbought territory suggesting that the short term upside from here is likely to be limited and that the price is vulnerable to a pull back.

More information

Morgans clients can login to view all recent technical analysis on companies we cover by browsing the research section and filtering by 'technical analysis' in the Market Updates section. If you are interested in finding out more, please contact your nearest Morgans office.

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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