Technical Analysis: 10 October 2019

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
10 October 2019, 4:23 PM

Firstwave Cloud Technology (FCT) – Double Blessed Buy

The primary down trend from the September 2016 high has lost momentum over the past ten months and the price has been trading sideways, fluctuating between $0.14 and $0.38.

The current secondary down trend has retraced to its key support of $0.14 where buying interest is likely to arise.

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

The first potential upside price target is $0.20. Over the medium term, levels to $0.24 appear easily achievable.

Cleanaway Waste Management (CWY) – Improvement in momentum

CWY has been trading in a correction mode since July 2019 which now appears to be reversing direction.

Bullish divergences between the price, the RSI and the MACD indicators have formed on the daily chart showing that momentum is improving and the price is likely to rise in the short term.

On Wednesday the price bounced strongly and broke above its down trend line drawn from the July 2019 high, which has positive implications in the near term.

The RSI indicator broke above its resistance suggesting that higher prices are likely to unfold.

The first potential upside price target is $2.20.

Regis Healthcare (REG) – Approaching resistance

The down trend from the March 2018 high has lost momentum over the past year and the price has been trading sideways, fluctuating between $2.31 and $3.50.

The current secondary up trend is approaching its resistance 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.

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

AMP Ltd (AMP) – Target reached

In our last update on September 26, 2019 we discussed the overbought nature of the stock and the likelihood of the price retracing in the short term.

A strong decline has unfolded over the past ten days and our price target of $1.65 has now been reached.

At present the stock is oversold on a weekly and daily basis and we note large bullish divergences on the daily and weekly charts, which suggests that the price is likely to rebound soon.

The initial upside price target is $1.80, however the price may overshoot.

Despite being oversold on a weekly and daily basis, at this juncture we don’t see strong signals that the stock is bottoming yet.

Flight Centre Travel (FLT) – Target reached

In our last update on October 4, 2019 we discussed the significance of the overhead resistance of $50.11 and the likelihood of the price breaking below support of $46.08 and declining in the short term.

Wednesday’s price action started an impulsive wave down, breaking below support and reaching and exceeding our price target of $42.00.

Although, the stock is oversold on a daily basis, the weekly momentum indicators remain bearish, therefore we see a good probability of the stock extending its current decline to $38.00 where initial support is likely to arise.

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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