Technical Analysis: 3 May 2019

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
03 May 2019, 10:39 AM

ANZ Banking Group (ANZ) – target reached

In our last update on April 14, 2019 we discussed the oversold momentum conditions and the likelihood of the price bouncing in the short term. A strong bounce has unfolded over the past two weeks and our short term upside price target of $27.50 has now been reached and exceeded. Wednesday’s price action re-visited its key resistance of $28.36 where initial selling pressure is likely to arise.

The RSI indicator has reached overbought territory suggesting that the price is vulnerable to a short term pull back from here.

Westpac Banking Group (WBC) – target reached 

In our last update on April 14, 2019 we discussed the improvement in momentum conditions and the likelihood of the price rallying in the short term. A strong bounce has unfolded over the past two weeks and our short term upside price target of $27.50 has now been reached and exceeded. Wednesday’s price action re-visited its resistance of $27.91 where initial selling pressure may arise. The RSI indicator completed a failure swing point from overbought territory, suggesting that the price is vulnerable to a pull back.

The potential short term share price weakness would provide an opportunity to accumulate the stock.

Commonwealth Bank (CBA) – target reached

In our last update on April 14, 2019 we discussed the bullish implications from the bottom reversal pattern on the RSI indicator and the likelihood of the price trading higher in the short term. A strong rally has unfolded over the past two weeks and our price target of $75.00 has now been reached and exceeded. The price re-visited its key resistance of $76.74 where initial selling pressure is likely to arise.

The RSI indicator has turned lower from overbought territory suggesting that the price is likely to pull back in the short term.

Costa Group Holdings (CGC) – buy on weakness 

CGC has been trading in a down trend since June 2018 which is still technically intact. The down trend has lost momentum over the past four months and the price has been trading sideways, fluctuating within the boundaries of a bullish ascending triangle. Wednesday’s price action rebounded to its key resistance of $5.91 where initial selling pressure is likely to arise. The potential short term share price weakness would provide an opportunity to accumulate the stock.

Our ideal entry is around $5.20.

Bega Cheese (BGA) – ramping up momentum

BGA has been trading in a down trend since July 2018 which is still technically intact. The down trend has lost momentum over the past month and the price appears to have been in the process of building a medium term bottom. Wednesday’s price action broke above resistance of $5.38 showing that buying interest is building up.

A decisive break above resistance is likely to follow which could trigger a rally to $5.90.

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.

  • Print this page
  • Copy Link