Technical Analysis: 30 August 2019

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
02 September 2019, 10:35 AM

People Infrastucture (PPE) – Heading higher

PPE has been trading in an up trend since listing which is still firmly intact. Friday’s price action broke above minor resistance of $3.37 suggesting that the correction from the July 2019 high is over and that higher prices are likely to unfold in the near term. The RSI and the MACD indicators are turning higher from oversold territory suggesting that the price is likely to bounce in the short term.

The potential upside price target is $3.90.

Ramsay Health Care (RHC) – In a secondary down trend

RHC has been trading in a secondary up trend since October 2018 which now appears to have reversed direction. Friday’s price action broke below support of $66.50 suggesting that lower price levels are likely to unfold in the months ahead.

The initial downside price target is $62.00. The momentum indicators have reached oversold territory suggesting that the price is likely to bounce in the short term. We see such potential short term share price strength as an opportunity to lighten positions.

Viva Energy group (VEA) – Approaching support

VEA has been trading sideways over the past year, fluctuating between $1.66 and $2.58. The price has been trading in a secondary correction since March 2019 which is still technically intact. Although the stock is oversold on a short term basis and a small bounce could be seen soon, further weakness is likely to unfold in the months ahead.

The potential downside price target is $1.75 where we would be looking to accumulate the stock.

Atlas Arteria (ALX) – Deterioration in momentum

ALX has been trading in an up trend since February 2018 which is still technically intact. Friday’s price action reached an all-time high of $8.58 pushing the weekly and daily momentum indicators close to overbought territory. While at this point there is no reversal of the secondary up trend, we note a bearish divergence on the weekly chart which points to a deeper correction in the near term.

Cleanaway Waste Management (CWY) – Short term bounce

CWY has been trading in a strong up trend since September 2015 which is still technically intact. The current secondary correction brought the momentum indicators into oversold territory, suggesting that the decline from the July 2019 high is likely to be arrested and the price could bounce in the short term.

The potential upside price target is $2.19. Over the medium term, the price is likely to take a breather and trade sideways.

More information

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Disclaimer: Analyst owns shares in: EFACustomAnalystPosn. 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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