Technical Analysis: 28 November 2019

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
28 November 2019, 2:00 PM

S&P/ASX 200 (XJO) – Likely to break higher

  • After posting an all-time high of 6875 in July 2019 the index took a breather and has been trading sideways over the past three months.
  • The higher lows on the daily chart are an encouraging sign which shows that buying interest is building up.
  • Despite the proximity to overbought levels, an upward breakout is likely to occur. The initial upside target based on such potential breakout is 6950.

Telstra Corporation (TLS) – Double Blessed Buy

  • TLS has been trading in a primary up trend since June 2018 which is still technically intact.
  • Wednesday’s price action decisively broke above minor resistance of $3.63 suggesting that the correction from the August 2019 high is likely to be complete.
  • The weekly and daily momentum conditions remain constructive and point to higher prices in the month(s) ahead.
  • The initial upside price target based on the breakout is $4.00.

Westpac Banking Corp (WBC) – Double Blessed Buy

  • WBC encountered strong resistance around $30.00 and has been trading in a downward trajectory over the past two months.
  • The current down swing has retraced to its previous support of $24.05 and is close to its key support of $23.30 which appears solid and is likely to hold.
  • The daily RSI and MACD indicators have reached oversold territory suggesting the price is likely to bounce in the short term.
  • The potential upside price target is $26.50.

Volpara (VHT) – Double Blessed Buy

  • VHT has been trading in a strong primary up trend since May 2017 which is still technically intact.
  • The current pull back has retraced to its 61.80% Fibonacci retracement ratio crossing at $1.65 where support is likely to hold.
  • The RSI and the stochastic indicators are turning higher from oversold territory suggesting that the price is likely to bounce in the near term.
  • The potential upside price target is $2.15.

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