Technical Analysis: 22 March 2019

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
22 March 2019, 8:33 AM

JB Hi-Fi (JBH) – target reached

In our last update on January 28, 2019 we discussed the likelihood of the price continuing to trade higher in the near term and our upside price target of $24.20 has now been reached. The latest upswing has lost momentum over the past week and the price has been trading sideways just below resistance of $24.49. The weekly and daily momentum conditions remain weak and the price appears overbought on a short term basis.

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

Paradigm Biopharmaceuticals (PAR) – second target reached

In our last update on January 25, 2019 we discussed the likelihood of the price trading higher in the near term with a potential price target in the range between $1.40 and $1.55. A strong rally has unfolded over the past month and our price target of $1.55 has been reached and exceeded. The RSI and the MACD indicators have reached overbought territory and are turning lower, suggesting that the price is vulnerable to a short term pull back.

Over the medium term, the price is likely to trade sideways, fluctuating between $1.15 and $1.60.

Accent Group (AX1) – overbought 

AX1 has been trading in an upward trajectory since November 2018 which is still technically intact. The latest upswing has rebounded to a band of resistance between $1.67 and $1.71 where selling pressure is likely to arise. The rally has lost momentum over the past week and a small bearish divergence between the price and the RSI indicator appears to be forming on the daily chart.

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

Coca-Cola Amatil (CCL) – short term weakness

The decline from the November 2018 high has lost momentum over the past three months and the price has been trading sideways, fluctuating between $7.87 and $8.76. The latest short term upswing has clearly lost momentum over the past two weeks and appears to be forming a small top. The momentum conditions remain poor and we see a good probability of the price declining further to $8.00 in the short term.

Over the medium term, our view on the stock is neutral and we favour further consolidation between $7.90 and $8.75.

oOhMedia (OML) – double blessed buy 

The decline from the August 2018 high has lost momentum over the past three months and the price has been trading sideways, fluctuating between $3.35 and $4.13. The price bounced off its support in late February 2019 and the current upswing is still in progress which is likely to extend further to $4.10.

Bullish divergences between the price, the RSI and the MACD indicators have formed on the daily and weekly charts, supporting our view that the price is likely to trade higher in the month(s) ahead.

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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