Technical Analysis: 20 May 2019

About the author:

Violeta Todorova
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.

More information

Morgans clients can login to view all recent technical analysis on companies we cover by browsing the research section and filtering by 'technical analysis' in the Market Updates section. If you are interested in finding out more, please contact your nearest Morgans office.

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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