Technical Analysis: 22 November 2019

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
22 November 2019, 12:05 PM

Westpac Banking Corp (WBC) – Approaching key support

The rally from the December 2018 low has lost momentum over the past two months and the price has been trading is a secondary down trend, declining with almost 18% since it peaked in September 2019.

The current price action is approaching a band of support between $23.30 and $24.05 where initial buying interest is likely to arise.

The RSI and the MACD indicators have reached oversold territory suggesting that the price is likely to bounce soon.

The potential upside price target is $27.00.

Longer term, the stock continues to be under pressure and at this point there is no sign the primary down trend is reversing.

ALS (ALQ) – Close to resistance

ALQ has been trading sideways over the past two years, fluctuating between $6.40 and $9.40.

The current secondary up trend is approaching its key resistance of $9.40 where selling pressure is likely to arise.

The weekly and daily RSI readings have entered overbought territory suggesting that the near term upside from here is likely to be limited and that the price is likely to pull back soon.

Over the medium term, our view on the stock remains neutral and we favour further consolidation in the coming months.

Ramsay Health Care (RHC) – At key resistance

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 has rebounded close to its key resistance where initial selling pressure is likely to arise.

The RSI and the MACD indicators appear to be in process of forming tops from overbought territory suggesting that the price is vulnerable to a short term pull back.

Given the proximity to resistance and the overbought momentum conditions we are of the view that the near term upside from here is likely to be limited.

Atomos (AMS) – Buy on weakness

AMS has been trading within the boundaries of an up trend channel since listing which is still technically intact.

The current short term up swing has rebounded to its previous resistance of $1.82 where initial selling pressure is likely to arise.

The RSI and the MACD indicators have reached overbought territory suggesting that the price is vulnerable to a pull back in the short term.

A small bearish divergence between the price and the stochastic indicator has formed on the daily chart pointing to weakness in the week ahead.

We continue to like the stock over the medium term and we see such potential short term share price weakness as a buying opportunity.

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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