Technical Analysis: 14 December 2020

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
14 December 2020, 9:30 AM

Appen (APX) - Oversold

After reaching a record high of $46.33 and overbought momentum readings on a weekly and daily basis in August 2020, the stock started trading in a correction mode.

The current short-term down swing is approaching static and dynamic support of $21.20 which appears solid and is likely to hold.

The weekly and daily momentum indicators have reached oversold territory suggesting that the current correction might be approaching completion.

Given the proximity to static and dynamic support and the oversold weekly and daily momentum conditions, we are comfortable to start accumulating the stock around current price levels.

The initial upside price target is $27.50. Over the medium-term, levels to $33.00 appear easily achievable.

Abacus Property Group (ABP) - Buy

ABP has been trading in a secondary up trend since March 2020 which is still technically intact.

The up trend is unfolding within the boundaries of an up-trend channel so far and the daily RSI indicator remains firmly in its bull market range.

The current short-term down swing has retraced close to its medium-term up trend line crossing at $2.85 where buying interest is likely to arise.

The RSI indicator has turned higher from its support line, suggesting that the price is likely to bounce in the short-term.

The first potential upside price target is $3.30. Over the medium-term, levels to $3.60 are achievable.

Given the proximity to dynamic support and the oversold momentum readings, we see the current price levels as attractive to buy the stock.

Charter Hall Retail REIT (CQR) - Buy

CQR has been trading in a secondary up trend since March 2020 which is still technically intact.

The RSI indicator remains in its bull market range showing that the up trend is healthy and likely to continue its upward trajectory.

The daily RSI and stochastic indicators have reached oversold levels, both pointing to a likely bounce in the short-term.

The first potential upside price target is $4.20. Over the medium-term, levels to $4.50 appear achievable.

Given the oversold daily momentum conditions, we are comfortable to start accumulating the stock around current price levels.

Fisher & Paykel (FPH) - Buy

The primary up trend has lost momentum over the past five months and the price has been trading sideways, fluctuating between $28.59 and $34.92.

The current short-term down swing has retraced close to its support where initial buying interest is likely to arise.

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

The potential upside price target is $34.00. The daily and weekly RSI indicator readings have approached oversold levels, suggesting that the price is likely to rise soon.

Given the proximity to key support and to oversold momentum levels, we see the current price levels presenting a good opportunity to buy the stock.

Cochlear (COH) – Approaching support

COH has been trading in a secondary up trend since March 2020 which is still technically intact.

Friday’s price action broke below its medium-term up trend line, showing that the up trend has deteriorated and suggesting that the medium-term up trend is likely to take a breather in the months ahead.

While the stock is overbought on a short-term basis and a rebound could unfold in the coming week, we are concerned with the deterioration of the RSI indicator, which suggests that a subsequent re-test of key support of $185.00 is likely.

We see the potential further share price weakness as an opportunity to accumulate the stock.

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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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