Technical Analysis: 5 September 2019
About the author:
- Author name:
- By Violeta Todorova
- Job title:
- Senior Technical Analyst
- Date posted:
- 05 September 2019, 10:40 AM
Bapcor (BAP) – Target reached
In our last update on June 18, 2019 we discussed the oversold nature of the stock and the likelihood of the price bouncing in the near term. A strong rally has unfolded over the past two months and our price target of $5.90 has now been reached and exceeded.
While at this point there is no sign the up trend is reversing we note a bearish divergence between the price and the RSI indicator which suggests the rally is likely to take a breather soon.
Freedom Foods Group (FNP) – Short term weakness
FNP has been trading sideways over the past six months, fluctuating between $3.95 and $5.67. The current short term upswing has rebounded to its previous resistance where initial selling pressure is likely to arise.
The RSI indicator has reached overbought territory suggesting that the price is vulnerable to a pull back in the short term. While at this point there is no sign that the recovery is over, and the rally could extend a bit further, we see the upside from here as limited.
The Star Entertainment Group (SGR) – Target reached
In our last update on August 16, 2019 we discussed the oversold nature of the stock and the likelihood of the price bouncing in the short term. The price did bounce as expected and our initial upside price target of $4.05 has now been reached.
The current short term upswing is approaching its previous resistance of $4.29 where initial selling pressure is likely to arise. The RSI indicator is approaching its bear market range resistance of 60.00% pointing to a likely pull back in the short term.
Medibank (MPL) – Taking a breather
MPL has been trading in a strong up trend since December 2018 which is still technically intact. This week’s price action clearly suggests that a slightly lower high is now in place, highlighting that the stock has entered a phase of consolidation. The weekly MACD indicator is turning lower from overbought territory suggesting that the price is likely to trade lower in the months ahead.
A break below support of $3.33 is likely and will suggest that lower prices are likely to unfold in the months ahead. The initial downside price target is $3.12.
Smartgroup (SIQ) – Target reached
In our update on March 17, 2019 we discussed the oversold nature of the stock and the likelihood of the price trading higher in the near term. A strong rally has unfolded over the past few months and our initial upside price target of $9.50 has now been exceeded as anticipated and highlighted in our note.
Although the stock is now overbought on a short and long term basis, we see a good probability of extension of the current rally to $12.00 - $12.50 where initial resistance is likely to arise.
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