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Technical Analysis: 4 March 2019

Violeta Todorova

ResMed Inc (RMD) – approaching resistance

The correction from the January 2019 peak has bottomed at $12.65 and the price has been trading in an upward trajectory over the past four weeks. While the current upswing is still in progress, the stock is approaching resistance of $15.03 and overbought momentum levels. The price is also approaching its 61.80% Fibonacci retracement ratio crossing at $15.10 where initial selling pressure in the short term is likely to arise.

Over the medium term, our view on the stock remains positive and we see levels to $15.50 achievable.

Atlas Arteria (ALX) – at resistance

ALX has been trading in a primary up trend which is still technically intact. The recent upswing has rebounded to its previous resistance of $7.26 where initial selling pressure is likely to arise. The RSI and the MACD indicators have turned lower from overbought territory suggesting that the price could fall further in the weeks ahead.

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

APA Group (APA) – approaching resistance 

APA has been trading in an upward trajectory since December 2018 which is still technically intact. The current upswing is approaching its key resistance of $10.29 where initial selling pressure is likely to arise. The RSI and the MACD indicators have reached overbought territory, suggesting that the near term upside from here is likely to be limited and that the price is vulnerable to a short term pull back.

PWR Holdings Limited (PWH) – approaching resistance

The up trend from the August 2017 low has lost momentum over the past four months and the price has been trading sideways, fluctuating between $2.89 and $4.04. The current upswing is approaching a band of resistance between $3.84 and $4.04 where initial selling pressure is likely to arise. The momentum indicators are approaching overbought territory suggesting that the short term upside from here is likely to be limited.

Active clients may consider trimming positions.

Webjet (WEB) – overbought 

WEB has been trading in an upward trajectory since January 2019 which is still technically intact. The current upswing has rebounded to its previous key resistance of $17.73 where initial selling pressure is likely to arise. The RSI and the MACD indicators have reached extremely overbought territory suggesting that the price is vulnerable to a short term pull back.

Given the proximity to key resistance and the overbought momentum readings, the short term upside from here is likely to be limited.

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.