Technical analysis: 6 August 2020

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
06 August 2020, 3:33 PM

Incitec Pivot (IPL) – Double Blessed Buy

Incitec Pivot (ASX:IPL) has been trading in a primary down trend over the past two years which is still technically intact.

The decline from the May 2020 high has lost momentum over the past month and the price has been trading sideways, fluctuating between $1.80 and $1.89.

Wednesday’s price action broke above minor resistance of $1.89 suggesting that higher prices are likely to unfold in the coming weeks.

The first potential upside price target based on the breakout is $2.25, however levels to $2.40 are achievable.

The momentum indicators are in neutral territory suggesting that further sideways trading is likely in the coming months.

Pendal Group (PDL) – Taking a breather

Pendal Group (ASX:PDL) has been trading in a primary down trend since May 2017 which is still technically intact.

The secondary up trend from the March 2020 low has lost momentum over the past two months and the price has been trading sideways, fluctuating within the boundaries of a descending triangle.

The lower highs on the daily show that selling pressure is building up and we see a risk of support of $5.56 being broken downwards.

A break below minor support of $5.56 would confirm the pattern and is likely to trigger further weakness to at least $5.00.

PolarX (PXX) - Buy

The down trend from the August 2019 high has reversed course in April 2020 and the stock has been trading in an upward trajectory over the past three months.

The rally took a breather over the past three weeks and the price has been trading sideways, fluctuating between $0.042 and $0.052.

The current short term down swing has retraced to its minor support of $0.042 where initial buying interest is likely to arise.

The stochastic indicator has reached oversold territory suggesting that the price is likely to bounce in the short term.

The first potential upside price target is $0.05 followed by $0.06 over the medium-term.

Ramelius Resources (RMS) – Still shining

Ramelius Resources (ASX:RMS) has been trading in a strong secondary up trend since March 2020 which is still technically intact.

The current short term pull back has retraced to its medium-term up trend line crossing at $2.10 where initial buying interest is likely to arise.

The short-term stochastic indicator has reached oversold territory and the RSI indicator has retraced to its support of 50% showing that momentum is still strong and suggesting that the price is likely to bounce in the short term.

The initial upside price target is $2.40, however over the medium-term higher price levels are achievable.

Our medium-term view on gold remains bullish despite being overbought in the short-term.

Our current price target is US$2,200 and we anticipate plenty more fireworks over the long-term.

Evolution Mining (EVN) – Momentum still constructive

Evolution Mining (ASX:EVN) has been trading in a secondary up trend since March 2020 which is still technically intact.

The weekly momentum indicators have reached overbought territory, however at this point we don’t see a reversal of the up-trend yet.

The daily RSI indicator has bounced off its medium-term up trend line suggesting that higher prices are likely to unfold in the coming weeks.

The initial upside price target is $6.60 where initial resistance may arise.

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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