Technical Analysis: 19 September 2019

About the author:

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

The A2 Milk Company (A2M) – Bearish breakout 

The up trend from the October 2018 low has lost momentum over the past six weeks and the price has been trading in a downward trajectory.

Wednesday’s price action broke below its key support of $12.86 suggesting that lower prices could unfold in the months ahead.

The initial downside price target based on the breakout is $11.00. In the short term, the price may experience a bounce a soon, which we believe is likely to be short lived.

Orica (ORI) – Overbought

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

The current price action rebounded to its previous resistance of $22.73 (weekly chart) where initial selling pressure may arise.

The weekly and daily momentum indicators are close to overbought territory suggesting that the near term upside from here is likely to be limited and that the price is vulnerable to a short term pull back.

Blackmores (BKL) – Overbought

BKL has been trading in a down trend over the past two years which is still technically intact.

The current short term up swing is approaching its previous band of support between $82.79 and $88.00 which may act as a resistance in the near term.

The RSI indicator has approached overbought territory suggesting that the short term rally might pause soon.

Bank of Queensland (BOQ) – Short term weakness

BOQ has been trading in a down trend since March 2015 which is still technically intact.

The current short term up swing has pushed the momentum indicators into overbought territory, which points to a likely pull back in the short term.

The potential downside price target is $9.00. Over the medium term, our view on the stock is neutral and we favour further sideways trading in the coming months.

Bendigo and Adelaide Bank (BEN) – Approaching resistance

BEN has been trading in a down trend since February 2015 which is still technically intact.

The rally from the March 2019 low has rebounded to its long term up trend line crossing at $11.70 where initial selling pressure is likely to arise.

The weekly and daily momentum indicators are approaching overbought territory suggesting that the current rally is likely to be arrested soon.

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

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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