Technical Analysis: 17 May 2019

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
17 May 2019, 9:28 AM

Aristocrat Leisure (ALL) – bullish breakout

The rally from the December 2018 low has lost momentum over the past three months and the price has been trading sideways, fluctuating between $22.67 and $26.59. Thursday's price action broke above resistance of $26.59 suggesting that the rally is likely to continue.

The initial upside price target based on the breakout is $28.50, however over time this level could be exceeded.

Origin Energy (ORG) – a breakout is imminent 

The up trend from the December 2018 low has lost momentum over the past three months and the price has been trading sideways, fluctuating between $7.01 and $7.77. The weekly momentum indicators remain constructive and point to higher prices in the month(s) ahead.

A break above resistance of $7.77 is highly likely and could trigger a fast rally to $8.40.

Costa Group Holdings (CGC) – accumulate

In our last update on May 3, 2019 we discussed that resistance of $5.91 is likely to exert selling pressure on the stock and the likelihood of the price declining in the short term. A strong sell-off has unfolded over the past two weeks with the price retracing close to its previous support of $4.72. The RSI indicator has approached oversold territory suggesting that the price is likely to bounce soon.

The initial upside price target is $5.50 however this level could be exceeded. 

Atomos (AMS) – heading higher 

The correction from the March 2019 high has lost momentum over the past two weeks and the price has been trading sideways, fluctuating between $0.90 and $1.01. Thursday's price action broke on an intra-day basis above resistance of $1.01 showing that the bulls are becoming more eager and that buying interest is building up. A decisive break on a closing basis is likely to follow which could trigger a fast rally to $1.10.

We are comfortable accumulating at current price levels.

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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