Technical Analysis: 30 April 2020

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
30 April 2020, 11:31 PM

Flight Centre (FLT) – Building a base

FLT experienced a sharp selloff throughout February and March 2020, declining from a high of $36.04 to a low of $8.56.

A bullish divergence between the price and the RSI indicator has formed from strongly oversold territory suggesting that the down trend is likely to take a breather and that the price is likely to rebound in the short term. The weekly and monthly momentum indicators are strongly oversold too also pointing to higher prices in the coming month.

The initial upside price target is $14.00, however this level could be exceeded.

We are of the view that the price is in the process of building an intermediate term bottom and the current share price weakness presents an opportunity to establish long positions.

Corporate Travel Management (CTD) – Building a base

After posting a high of $22.15 on January 17, 2020 the price experienced a sharp selloff declining to a low of $4.35 on March 19, 2020. A strong rebound unfolded over the past month and a higher low appears to be forming on the daily chart.

The weekly momentum indicators are just above oversold territory and pointing higher, suggesting that the current advance is likely to extend further.

The first potential upside price target is $12.20. Once resistance of $12.21 is cleared, the price could rally to $15.00.

Redbubble (RBL) – Short term weakness

After peaking at $2.08 on November 15, 2019 the price entered a new bear secondary bear phase and declined to a low $0.40 on March 23, 2020. A strong rebound unfolded over the past month with the price re-visiting its previous support of $0.99 where initial selling pressure is likely to arise. The RSI and the stochastic indicators have reached overbought territory suggesting that the price is likely to pull back in the short term. This price action could be seen as part of building a new intermediate term trading range, therefore, we see strong support arising around $0.40.

Coles Group (COL) – Trading in a range

The up trend from the March 2019 low has lost momentum over the past two months and the price has been fluctuating between $14.01 and $18.09. Wednesday’s price action broke below its lower boundary of its symmetrical triangle, showing that the price could retrace close to the bottom of its medium term trading range. This means a decline to $15.00 could unfold in the coming weeks. Over the medium term, our view on the stock is neutral and we favor further consolidation between $14.00 and $17.00 in the months ahead.

Orocobre (ORE) – Building a base

After posting a high of $3.96 in January 2020 and failing to break above its key resistance of $4.04, the positive momentum has reversed and the price has declined to a low of $1.83 in March 2020.

The selling pressure has eased over the past month and the price has been trading in a range between $1.83 and $2.45, building a secondary bottom.

While at this point the momentum indicators remain week, we see a good probability of the price subsequently breaking above resistance of $2.45 and rallying to $3.00.

More information

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Disclaimer: Analyst may own shares. 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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