Technical analysis: 24 August 2020

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
24 August 2020, 12:00 PM

Coca-Cola Amatil (CCL) – Target reached

In our last update on the 11th of May 2020 we discussed that support of $7.52 is likely to hold and the bullish implications from the oversold weekly readings.

A strong rally has unfolded over the past three weeks and our initial upside price target of $9.70 has now been reached.

Friday’s price action rebounded to its previous resistance of $9.89 where initial selling pressure is likely to arise.

The daily RSI indicator has reached overbought territory suggesting that the short-term rally is likely to take a breather.

Given the proximity to key resistance and the overbought momentum readings, we are of the view that the near-term upside from here is likely to be limited.

A subsequent break above key resistance of $9.89 would signal that secondary bottom is in place and trigger higher prices over the medium-term.

The initial medium-term upside price target based on the potential breakout is $10.50.

Jumbo Interactive (JIN) – Heading higher

The rebound from the March 2020 low has lost momentum over the past four months and the price has been trading sideways fluctuating between $9.52 and $14.03.

The weekly RSI indicator has posted a new higher high suggesting that the price is likely to continue its upward trajectory in the coming weeks.

The short-term down trend line has been breached on Friday suggesting that the price is likely to re-visit its resistance of $14.03.

A subsequent break above this level will have bullish implication over the medium-term and trigger higher prices towards $16.00.

Argo Investments (ARG) – Momentum still constructive

The strong rebound from the March low has lost momentum over the past two months and the price has been trading sideways, fluctuating within the boundaries of a bullish ascending triangle.

A decisive break above resistance of $7.88 would confirm the pattern and is likely to trigger higher prices in the coming weeks.

The initial upside price target based on such potential breakout is $8.40.

The momentum indicators remain constructive at this point with the RSI indicator holding support at 40%, showing that momentum is still strong.

In the short-term, the price could experience a mild pull back as the RSI and the stochastic indicators are in overbought territory.

South32 (S32) – Heading higher

S32 has been trading within the boundaries of a primary down trend channel (red lines) over the past two years which is still technically intact.

The price has been in a recovery mode since March 2020 and trading within the boundaries of a smaller up trend channel (green lines).

The RSI indicator has been finding firm support at 40% over the past four months showing that momentum is still strong.

The RSI and the stochastic indicators have turned up from oversold territory suggesting that higher prices are likely to unfold in the short-term.

Friday’s price action bounced off its up trend line crossing at $2.10 which is likely to act as a dynamic support.

The first potential upside price target is $2.40 followed by $2.60.

Suncorp Group (SUN) – Bullish breakout

SUN has been trading sideways over the past four months fluctuating between $8.33 and $10.82.

Friday’s price action decisively broke above minor resistance of $8.97 and has confirmed a small bottom reversal pattern within the larger rectangle.

The daily RSI indicator has been constructive and finding firm support above 40% showing that momentum is strong.

The potential short-term upside price target based on the breakout is $10.80 where initial selling pressure is likely to arise.

The weekly momentum indicators at this point remain below 60%, which means in the long-term there is no indication the primary down trend is reversing, therefore we only favour a bounce in the short-term.

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