Technical Analysis: 6 September 2019

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
06 September 2019, 2:24 PM

Cochlear (COH) – Losing momentum

COH has been trading in a strong upward trajectory since April 2019 which now appears to be losing momentum.

A lower high is in the process of forming on the daily chart showing that selling pressure is building up.

The weekly momentum indicators are turning lower from overbought territory suggesting that the price is likely to take a breather in the near term and is vulnerable to a pull back.

The initial downside price target is $200.00.

OZ Minerals (OZL) – Accumulate

In our last update on August 2, 2019 we discussed the overbought nature of the stock and the likelihood of selling pressure arising in the near term.

A deep pull back unfolded over the past few weeks and the current downswing retraced close to its key support of $8.08 where buying interest is likely to arise.

The RSI and the MACD indicators are building small bases suggesting that the price is likely to bounce in the near term.

The first potential upside price target is $9.60 followed by $9.95.

Beacon Lighting (BLX) – Double Blessed Buy

BLX has been trading in a down trend since January 2016 which is still technically intact.

The latest downswing has retraced to its previous key support of $0.96 where strong buying interest is likely to arise.

A large triple divergence between the price and the RSI indicator has formed on the weekly chart suggesting that the price is likely to rebound strongly.

Thursday’s price action broke above minor resistance of $1.12 showing that buying interest is building up.

Given the favorable set up on the weekly chart and the bullish breakout on the daily chart, we see a good probability of the price trading higher in the short term.

The first potential upside price target is $1.30.

Reece (REH) – Ramping up momentum

The decline from the September 2018 high has lost momentum over the past eighth months and the price has been trading sideways, fluctuating between $9.43 and $10.81.

The weekly momentum indicators keep improving showing that buying interest is building up.

A break above resistance of $10.81 is likely which could trigger a rally to $11.50. Our ideal entry is around $9.80.

NEXTDC (NXT) – Short term bounce

The decline from the June 2018 high has lost momentum over the past eighth months and the price has been trading sideways, fluctuating between $5.61 and $7.25.

The current downswing has retraced close to its key support where initial buying interest is likely to arise.

The RSI and the MACD indicators have approached oversold territory suggesting that the price is likely to bounce in the near term.

The first potential upside price target is $6.60.

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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