Technical Analysis: 13 September 2019

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
13 September 2019, 12:16 PM

Coles Group (COL) – Overbought

COL has been trading in a strong up trend since March 2019 which is still technically intact.

Thursday’s price action posted an all-time high of $15.16 but turned unfavourably throughout the day and has formed an open close reversal bar by the close.

The momentum indicators have reached overbought territory suggesting that the stock is vulnerable to a pull back in the short term.

The initial downside price target is $14.00.

Incitec Pivot (IPL) – At resistance

IPL has been trading in a down trend since November 2018 which is still technically intact.

The current short term up swing has rebounded strongly and re-visited its multiple resistance of $3.58 where initial selling pressure is likely to arise.

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

The potential downside price target is $3.20.

LendLease Group (LLC) – Target reached

In our last update on March 31, 2019 we discussed the improvement in momentum and the likelihood of the price trading higher in the near term.

A strong rally has unfolded over the past five months and our medium term upside price target of $15.00 has been reached and exceeded.

The current short term upswing has clearly lost momentum over the past two weeks and the price has been trading sideways in a narrow range.

The RSI and the MACD indicators have reached overbought territory suggesting that the price is vulnerable to a short term pull back.

A break below minor support of $16.64 will confirm this view and is likely to trigger a pull back to $15.00.

Aurizon Holdings (AZJ) – Deterioration in momentum

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

An equal high has formed on the daily chart suggesting that the bulls are running out of steam.

The RSI indicator has broke below its support suggesting that momentum is deteriorating.

The weekly momentum indicators are in strongly overbought territory suggesting that the stock is vulnerable to a short term pull back.

A break below minor support of $5.72 is likely and could trigger a decline to $5.40.

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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