Technical Analysis: 25 March 2019

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
26 March 2019, 11:29 AM

Class (CL1) – overbought and at resistance

CL1 has been trading in a primary down trend since October 2017 which is still technically intact. The current upswing has rebounded to its long term down trend line crossing at $1.80 where strong selling pressure is likely to arise.

The RSI indicator has reached strongly overbought territory suggesting that the price is vulnerable to a short term pull back.

Given the proximity to dynamic resistance and the overbought momentum conditions the probability of a sharp pull back from here is high.

Cedar Woods Properties (CWP) – overbought

CWP has been trading in a strong upward trajectory since January 2019 which is still technically intact. The current upswing is approaching key resistance around $6.30 where strong selling pressure is likely to arise.

The RSI and the MACD indicators have reached overbought territory suggesting that the price is vulnerable to a pull back.

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

Hotel Propery Investments (HPI) – overbought

HPI enjoyed a strong bounce since January 2019 which now appears to be losing momentum.

The RSI and the MACD indicators have reached strongly overbought territory suggesting that the price is vulnerable to a pull back in the short term.

The weekly RSI and stochastic indicators are overbought as well suggesting that the medium term up trend from the February 2018 low is likely to take a breather in the months ahead with the price retreating to $3.20.

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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