Technical Analysis: 17 May 2019
About the author:
- 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.
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