Technical Analysis: 14 November 2019

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
14 November 2019, 12:15 PM

Commonwealth Bank (CBA) – Short term weakness

  • The rally from the October 2018 low has lost momentum over the past four months and the price has been trading sideways, fluctuating between $74.34 and $83.99.
  • The recent short term up swing rebounded to its previous resistance of $80.97 where strong selling pressure was encountered on Wednesday.
  • The RSI and the stochastic indicators are turning lower from overbought territory suggesting that the price is likely to pull back in the short term.
  • The potential downside price target is $77.00.

National Australia Bank (NAB) – Short term weakness

  • NAB has been trading in an up trend since December 2018 which appears to be losing momentum over the past month.
  • The current short term up swing has rebounded to its previous resistance of $29.23 where selling pressure is likely to arise.
  • The RSI and the stochastic indicators are turning lower from overbought territory suggesting that the price is likely to pull back in the short term.
  • The potential downside price target is $27.70.

Australian Finance Group (AFG) – Deterioration in momentum

  • AFG has been trading in a strong up trend since February 2019 which is still technically intact.
  • While the daily chart remains constructive at this point, the weekly momentum indicators are overbought and diverging with the RSI completing a top reversal pattern on Wednesday.
  • This suggests that after such strong run, there is good probability the price will take a breather in the coming months.

Ramsay Health Care (RHC) - Overbought

  • The up trend from the October 2018 low has lost momentum over the past four months and the price has been trading sideways, fluctuating between $61.56 and $74.12.
  • The current up swing is approaching its key resistance of $74.12 where initial selling pressure is likely to arise.
  • The RSI and the MACD indicators have approached overbought territory suggesting that the price is likely to pull back in the short term. Given the proximity to key resistance and the overbought momentum levels, we see the near term upside from here as limited.

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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