Technical Analysis: 5 September 2019

About the author:

Violeta Todorova
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.

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.

  • Print this page
  • Copy Link