Technical Analysis: 18 December 2020

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
18 December 2020, 9:00 AM

Acrow Formwork and Construction Services (ACF)

ACF has been trading in a strong secondary up trend since March 2020 which is still firmly intact.

The current pull back has retraced close to its previous support of $0.34 where buying interest is likely to arise.

The RSI indicator has reached its bull market support of 40% suggesting that the price is likely to bounce soon.

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

The first potential upside price target is $0.40. Over the medium-term, levels to $0.44 appear easily achievable.

Livehire (LVH) – Bullish breakout

LVH has been trading in a primary down trend since January 2018 which is still technically intact.

The weekly RSI indicator broke above its bear market resistance in August 2020 suggesting that the stock is likely to be at a turning point.

The daily momentum conditions have improved significantly over the past eight months also pointing to higher prices over the medium-term.

Wednesday’s price action broke above minor resistance of $0.29 suggesting that the correction from the August 2020 high is likely to be complete.

The daily RSI indicator completed a large bottom reversal pattern suggesting that the price is likely to rally in the coming weeks.

The first potential upside price target is $0.35. Over the medium-term, levels to $0.42 appear easily achievable.

GARDA Property Group (GDF) – Heading higher

GDF has been trading in a strong secondary up trend since March 2020, fluctuating within the boundaries of an up-trend channel.

The daily RSI indicator remains firmly in its bull market range and the weekly RSI indicator is above its medium-term up trend line, suggesting that momentum is still strong and constructive.

Thursday’s price action bounced strongly suggesting that the minor correction from the November 2020 high is likely to be complete and that higher prices are likely to unfold in the weeks ahead.

The first potential upside price target is $1.35. Over the medium-term, levels to $1.45 are achievable.

Orica (ORI) – Double Blessed Buy

The decline from the November 2019 high has lost momentum over the past nine months and the price has been trading sideways, fluctuating between $14.95 and $18.62.

The current pull back has retraced close to its support of $14.95, which appears solid and is likely to hold.

The RSI indicator has approached oversold levels suggesting that the decline is likely to be arrested soon.

The stochastic indicator has turned higher from oversold territory suggesting that the price is likely to bounce in the short-term.

Given the proximity to key support and to oversold momentum levels, we see the current prices as attractive to buy the stock. The potential upside price target is $18.00.

TPG Telecom (TPG) – Double Blessed Buy

The decline from the July 2020 high has lost momentum over the past two months and the price appears to have been in the process of building a base.

The current short-term down swing has retraced close to its previous support of $6.93, which appears solid and is likely to hold.

The RSI indicator has approached oversold territory suggesting that the price is likely to bounce soon.

Given the proximity to a band of support between $6.93 and $7.07, which attracted buying interest over the past four months, we are of the view that the stock has a high probability of bouncing from here.

The potential upside price target is $8.10.

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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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