Technical Analysis: 11 October 2019

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
11 October 2019, 5:06 PM

Netwealth Group (NWL) – Approaching resistance

NWL has been trading sideways over the past year, fluctuating between $6.35 and $10.11.

The current up swing is approaching its key resistance of $10.11 where selling pressure is likely to arise.

The RSI and the stochastic indicators are approaching overbought territory suggesting that the price is likely to pull back soon.

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

Transurban Group (TCL) – Close to resistance

The correction from the August 2019 high of $16.06 has lost momentum over the past month and the price has been trading sideways, fluctuating between $14.11 and $15.12.

The current short term up swing is approaching resistance of $5.12 where initial selling pressure is likely to arise.

Over the medium term, the momentum indicators are in neutral territory and we favour sideways trading in the month(s) ahead.

Atlas Arteria (ALX) – At resistance

The up trend from the January 2019 low has lost momentum over the past three months and the price has been trading sideways, fluctuating between $7.52 and $8.58.

The current short term up swing has rebounded close to its resistance of $8.58 where selling pressure is likely to arise.

The RSI indicator has turned lower from its down trend line (see chart below) suggesting that the price is likely to pull back in the short term.

The momentum indicators are in neutral territory and we favour further consolidation in the coming month(s).

Inghams (ING) – Approaching support

ING has been trading in a down trend since February 2019 which is still technically intact.

The current price action is approaching its key support of $2.76 where initial buying interest is likely to arise.

The weekly and daily momentum indicators are in oversold territory, suggesting that the current decline is likely to be arrested soon.

Silver Lake Resources (SLR) – High conviction buy

SLR has been trading in a strong up trend over the past two years which is still technically intact.

The correction from the July 2019 high has declined to $0.89, which is the 61.8 Fibonacci retracement ratio, where support is likely to arise.

This level is close to a previous key resistance on the weekly chart, which is likely to act as a strong support.

The weekly and daily momentum indicators are turning higher from oversold territory suggesting that the price is likely to rally in the weeks ahead.

The medium term down trend line was broken upwards on Friday, adding further confidence in our bullish call.

The first potential upside price target is $1.15 followed by $1.30.

Ramelius Resources (RMS) – Short term pull back.

RMS has been trading in a strong up trend since November 2018 which is still technically intact.

The up trend has took a breather over the past two months and the price has been trading sideways, fluctuating between $1.08 and $1.44.

The current short term up swing has rebounded to its resistance of $1.44 where selling pressure is likely to arise.

The RSI and the stochastic indicators are turning lower from overbought territory suggesting that the price is likely to pull back in the short term.

The initial downside price target is $1.15.

Active traders may consider switching from RMS into SLR.

Crude Oil – Short term bounce.

The correction from the April 2019 high has lost momentum over the past four months and the price has been trading sideways, fluctuating between US$50.52 and US$63.12.

The support of US$50.52 is close to 61.8 Fibonacci retracement ratio where support held on three occasions so far.

The RSI and the stochastic indicators have turned up from oversold territory suggesting that the price is likely to bounce in the short term.

The potential upside price target is US$59.00.

Central Petroleum (CTP) – Double Blessed Buy

CTP has been trading in a slow but consistent up trend over the past two years which is still technically intact.

The pull back from the September 2019 high has retraced to its 61.8 Fibonacci retracement ratio, where support is likely to hold.

The RSI and the MACD indicators are turning higher from oversold territory suggesting that the price is likely to bounce in the near term.

The initial upside price target is $0.20.

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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