Technical Analysis: 21 November 2019

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
21 November 2019, 11:10 AM

SEEK (SEK) – At resistance

SEK has been trading in an up trend since January 2019 which is still technically intact.

The current up swing has rebounded to its previous resistance of $22.94 where initial selling pressure is likely to arise.

The weekly and daily momentum indicators are close to overbought territory suggesting that the rally is likely to pause soon. A break below minor support of $22.33 will confirm that a short term top is in place and is likely to trigger a pull back to $21.50.

Overall, given the proximity to key resistance and the overbought and diverging momentum conditions, we are of the view that the secondary up trend is likely to take a breather in the coming months.

Domino's Pizza (DMP) – Approaching resistance

After bottoming at $35.30 in August 2019 the stock started trading in an upward trajectory, with the secondary up trend still holding up at present.

The current price action is approaching a band of resistance between $54.94 and $57.80 where selling pressure is likely to arise.

The daily RSI indicator has been forming a bearish divergence over the past two months, showing that momentum is deteriorating.

The weekly RSI indicator is in overbought territory suggesting that the stock is likely to pull back soon.

Given the overhead key resistance and the overbought and diverging momentum conditions, we are of the view that the near term upside from here is likely to be limited and the secondary up trend is likely to take a breather in the coming months.

Bapcor (BAP) – Deterioration in momentum

In our update on June 18, 2019 we discussed the oversold nature of the stock and the likelihood of the price bouncing in the near term.

A strong rally has unfolded over the past five months with the price rebounding close to its all-time high of $7.85 where resistance appears solid and is likely to hold.

A triple bearish divergence between the price and the RSI indicator has formed on the daily chart over the past three months, showing that momentum is deteriorating.

The weekly RSI and MACD indicators are overbought and forming top reversal patterns, which suggests the price is likely to follow.

A subsequent break below support of $6.88 is likely and will confirm a double top pattern with a potential downside price target of $6.50.

Monash IVF (MVF) – Accumulate

The sharp selloff from the August 2019 high has retraced close to its key support of $0.88, which appears solid and is likely to hold.

The down trend has clearly lost momentum over the past two months and the price has been trading sideways, fluctuating between $0.94 and $1.07, building a secondary time frame base.

The recent break above resistance $1.07 shows that buying pressure is building up and that the price is likely to trade higher in the coming months.

The potential upside price target is $1.20.

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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