Technical Analysis: 20 May 2019
About the author:
- Author name:
- By Violeta Todorova
- Job title:
- Senior Technical Analyst
- Date posted:
- 20 May 2019, 7:55 AM
Orora (ORA) – close to target
In our last update on May 2, 2019 we discussed the likelihood of the price trading higher in the short term and recommended clients buy the stock. A strong rally has unfolded over the past three weeks and our upside price target of $3.30 has almost been reached. The current price action rebounded close to its medium term down trend line crossing at $3.20 where initial selling pressure may arise.
We see such potential short term share price weakness as a buying opportunity.
CSL Ltd (CSL) – tracking well
CSL has been trading in an upward trajectory since December 2018 which is still technically intact. Friday's price action broke above minor resistance of $203.77 confirming an imperfect ascending triangle. The pattern has bullish implications and suggests that higher prices are likely to unfold in the month(s) ahead.
The potential upside price target is $220.00. Any short term share price weakness would provide a buying opportunity.
Emeco Holdings (EHL) – short term buy
EHL has been trading in a downward trajectory since November 2018 which is still technically intact. The down trend has lost momentum over the past month with strong buying support arising around $1.80. The current short term down swing retraced to its previous support where buying interest is building up over the past week. The RSI indicator has approached oversold territory suggesting that the price is likely to bounce soon.
The initial upside price target is $2.05.
REA Group (REA) – heading higher
REA has been trading in an upward trajectory since December 2018 which is still technically intact. The recent price action broke above resistance of $82.80 suggesting that the secondary up trend is likely to continue. The potential upside price target is in the range between $92.00 and $95.00 where resistance appears solid and selling pressure is likely to arise.
The expected share price strength would provide an opportunity for active traders to trim positions.
Medibank (MPL) – approaching resistance
MPL has been trading in an up trend since December 2018 which appears to be losing momentum. The current short term upswing has rebounded close to its previous resistance of $2.98 where initial selling pressure is likely to arise.
The RSI and the MACD indicators are close to overbought territory suggesting that the price is vulnerable to a pull back in the short term.
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