Technical Analysis: 29 November 2019

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
29 November 2019, 3:57 PM

New Hope Corporation (NHC) – Double Blessed Buy

NHC has been trading in a down trend since March 2019 which appears to be losing momentum over the past three months.

The price retraced to its previous multiple key support and resistance of $1.94 which is likely to act as a support again.

The weekly and daily momentum indicators are oversold and a large bullish divergence between the price and the RSI indicator has formed on the chart.

Given the proximity to key support and the oversold and diverging momentum conditions, the current set up offers a great risk/reward trading opportunity.

Orocobre (ORE) – Building a base

ORE has been trading in a down trend since January 2018 which is still technically intact.

The down trend has lost momentum over the past three months and the stock has been trading sideways, fluctuating between $2.18 and $2.81, building a small base.

The price retraced close to its previous key support/resistance of $2.08 where buying interest is likely to be strong.

We would be looking to open long positions in the range between $2.20 and $2.30 with a target of $2.80.

A subsequent break above this level is likely and would confirm that a secondary bottom is in place. The potential medium term upside price target is $3.30.

Antisense Therapeutics (ANP) – Buy

ANP has been trading in an up trend since October 2018 which is still technically intact.

The current correction retraced to its breakout point of $0.067 where support is likely to hold.

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

The initial upside price target is $0.10.

SomnoMed (SOM) – Tracking well

SOM has been trading in a secondary up trend since June 2019 which is still technically intact.

The weekly and daily momentum conditions are constructive and firmly in the bull market range, which suggests that higher prices are likely to unfold in the coming months.

The first potential upside price target is $3.30 however this level could be exceeded over the medium term.

Orica (ORI) – In an up trend

ORI has been trading in an up trend since October 2018 which is still technically intact.

The weekly and daily momentum indicators are in the bull market range suggesting that higher prices are likely to unfold in the coming months.

An extension of the current secondary rally to $26.00 is possible.

In the short term, the price is vulnerable to a pull back as the weekly RSI is overbought.

Karoon Energy (KAR) – Lifting our target.

In our last update on November 8, 2019 we discussed the improvement in the momentum conditions and the likelihood of the price rising in the short term.

The price bounced strongly over the past few weeks and our initial upside price target of $1.13 has now been reached.

The price broke above minor resistance of $1.11 on Friday suggesting that higher prices are likely to unfold over the medium term.

Therefore, we lift our price target to $1.20.

TPG Telecom (TPM) – Short term weakness

The decline from the August 2018 high has lost momentum over the past year and the price has been trading sideways, fluctuating between $5.94 and $7.36.

The current short term up swing has rebounded to its band of resistance between $7.25 and $7.36 where selling pressure is likely to arise.

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

The initial downside price target is $6.50.

Over the medium term, our view on the stock is neutral and we favor further sideways trading in the coming months.

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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