Technical Analysis: 7 November 2019

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
07 November 2019, 1:30 PM

 S&P/ASX 200 (XJO) – Taking a breather

The XJO has been trading in a secondary up trend since December 2018 which is still technically intact.

The up trend has lost momentum over the past three months and the index has been trading sideways, fluctuating between 6396 and 6875, which are the new key support and resistance levels to watch.

The weekly and daily momentum indicators are in a sideways market range suggesting that further consolidation is likely in the coming weeks. Short term support is at 6612 and short term resistance at 6775.

OZ Minerals (OZL) – Target reached

In our last update on September 6, 2019 we discussed the likelihood of the price trading higher and recommended clients buy the stock.

A strong rally has unfolded over the past two months and our price target of $9.95 has now been reached and exceeded.

The current price action is approaching its key resistance of $11.04 where initial selling pressure is likely to arise.

The RSI and the MACD indicators have reached overbought territory suggesting that the price is likely to pull back soon.

Active traders may consider trimming positions.

Corporate Travel Management (CTD) – Bullish breakout

CTD has been trading in a down trend since September 2018 which is still technically intact.

The current secondary decline has lost momentum over the past two months and the price has been trading sideways, fluctuating between $17.30 and $19.72.

Wednesday’s price action broke above minor resistance of $19.72 suggesting that buying interest is building up.

The down trend line on the RSI indicator has been broken upwards showing an improvement in the momentum conditions.

The potential upside price target based on the breakout is $22.00.

Beacon Lighting (BLX) – Target reached

In our last update on September 6, 2019 we discussed the likelihood of the price rebounding strongly in the near term and recommended clients buy the stock at $1.13.

A nice and consistent rally has unfolded over the past two months and our price target of $1.30 has now been reached.

While at this point there is no clear sign the up trend is over, we note that the daily and weekly momentum indicators are overbought and the price is close to a band of resistance between $1.34 and $1.40.

This suggests that the near term upside from here is likely to be limited and the price could take a breather in the coming week(s).

Aurizon Holdings (AZJ) – Taking a breather

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

The up trend has lost momentum over the past two months and the price has been trading sideways, fluctuating between $5.69 and $6.11. The up trend line on the leading RSI indicator has been broken downwards showing that momentum is deteriorating.

A break below support of $5.69 is likely which could trigger a decline to $5.30 - $5.40.

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.

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