Technical Analysis: 3 December 2020

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
03 December 2020, 8:30 AM

Treasury Wine Estates (TWE) - Accumulate

TWE has been trading in a down trend since December 2019 which is still technically intact.

The current short-term down swing has retraced to a band of support between $7.86 and $8.40 where initial buying interest is likely to arise.

The daily RSI and stochastic indicators have reached oversold territory suggesting that the price is likely to bounce in the short-term. The potential upside price target is $10.00.

While at this point there is no clear sign the primary down trend is reversing course, we note the emergence of a bullish divergence between the price and the weekly RSI indicator on the chart.

This suggests that the stock might be approaching a turning point and that in the near-term the price is likely to stabilize around support.

APN Convenience Retail REIT (AQR) - Accumulate

The strong rebound from the March 2020 low has lost momentum over the past three months and the price has been trading in a correction mode.

The current down swing has lost momentum over the past three weeks and the price has been trading sideways, fluctuating within the boundaries of a narrow range.

The down trend line of the RSI indicator has been broken upwards, suggesting that higher prices are likely to unfold in the coming month(s).

A break above minor resistance of $3.70 is likely and would suggest that the correction is complete. The potential upside price target based on the anticipated breakout is $3.94.

Damstra Holdings (DTC) - Accumulate

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

The current down swing has retraced to its previous support of $1.60 where initial buying interest is likely to arise.

The RSI and the MACD indicators have reached oversold territory suggesting that the price is likely to bounce in the short-term.

The first potential upside price target is $1.90, however over the medium-term higher price levels are achievable.

Given the proximity to key support and the oversold momentum conditions, we are comfortable to accumulate the stock around current prices.

Orica (ORI) - Accumulate

The initial rebound from the March 2020 low has quickly lost momentum and the price has been trading sideways over the past eight months, fluctuating between $14.95 and $18.62.

The current price action is in the bottom half of its trading range and is approaching a band of support between $14.95 and $15.66 where buying interest is likely to arise.

The stochastic indicator has reached oversold levels suggesting that the price is likely to bounce soon.

The potential upside price target is $18.10, however this level could be exceeded.

Given the proximity to a band of support, we see the current pull back as an opportunity to start accumulating the stock.

APA Group (APA) - Accumulate

The strong rebound from the March 2020 low has lost momentum over the past five months and the price has been gradually drifting lower.

The current price action has approached a band of support between $10.07 and $10.34, where initial buying interest is likely to arise.

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

Given the proximity to a band of support and the oversold momentum readings, we are comfortable to start accumulating around current price levels.

The initial upside price target is $11.20, however this level could be exceeded over time.

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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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