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Technical Analysis: 29 March 2019

Violeta Todorova

Bapcor (BAP) – accumulate

BAP has been trading in a down trend since September 2018 which is still technically intact. The decline has clearly lost momentum over the past five months with the price posting only marginally lower lows. The current short term down swing has approached a band of support between $5.42 and $5.19 where buying interest is likely to be strong. The RSI and the stochastic indicators are close to oversold territory suggesting that the price is likely to bounce in the short term.

The initial upside price target is $6.00 however this level could be exceeded.

Domino's Pizza (DMP) – heading higher

In our last update on December 14, 2018 we highlighted that strong buying interest is likely to arise around support of $38.11 and expected the price to bounce to $46.00 in the short term. The price rebounded to $47.85 in February 2019 from where a pull back took place. The correction has clearly lost momentum over the past few weeks and the price has been trading sideways and building a small base. The leading RSI indicator completed and confirmed a bullish ascending triangle, suggesting that the price is likely to trade higher. A break above minor resistance of $43.03 is likely which could trigger a rally to $46.00 - $47.00.

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

Suncorp Group (SUN) – lifting our target 

In our last update on December 14, 2018 we discussed that buying interest is likely to arise around support of $12.43 and highlighted that the price is likely to bounce in the short term. A strong bounce has unfolded over the past two months and our initial upside price target of $13.50 has now been reached.

The momentum indicators remain constructive and we see a potential for further upside in the range between $14.00 - $14.10 in the near term.

Baby Bunting Group (BBN) – approaching support

The up trend from the March 2018 low has lost momentum over the past six months and the price has been trading sideways, fluctuating between $1.95 and $2.63. The current short term down swing is approaching a band of support between $1.95 and $2.00 where initial buying interest is likely to arise. The RSI and the MACD indicators are approaching oversold territory suggesting that the price is likely to bounce soon.

We would be looking to open long positions in the low $2.00's.

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.