Technical Analysis: 28 January 2020

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
28 January 2020, 11:36 AM

HUB24 (HUB) – Double Blessed Buy

HUB has been trading sideways over the past year fluctuating between $9.89 and $15.55.

The current short term down swing is approaching its key support where buying interest is likely to arise.

The weekly and daily momentum indicators are approaching oversold territory suggesting that the price is likely to bounce soon.

Given the proximity to key support and the oversold momentum readings we see a potential decline to $10.00 as an opportunity to accumulate the stock.

Aventus Group (AVN) – Bullish breakout

AVN has been trading in a strong up trend over the past year which is still technically intact.

Last week’s price action broke above resistance of $2.96 showing that buying interest is still strong.

The potential medium term upside price target based on the breakout is $3.10.

In the short term, the price could decline in the range between $2.70 and $2.80 where we would be looking to accumulate the stock.

APN Convenience Retail REIT (AQR) – Bullish breakout

AQR has been trading in an up trend over the past year which is still technically intact. The up trend has lost momentum over the past six months and the price has been trading sideways within the boundaries of a bullish ascending triangle. Last week’s price action broke above its key resistance of $3.58 suggesting that higher prices are likely to unfold over the medium term. The potential upside price target is $3.85. In the short term, the stock could experience a pull back as the momentum indicators are in overbought territory. A potential weakness to $3.50 would present an opportunity to accumulate the stock.

Bingo Industries (BIN) – Close to resistance

BIN has been trading sideways over the past two years fluctuating between $1.17 and $3.28.

The current medium term rally rebounded close to its previous key resistance where selling pressure is likely to arise.

A triple bearish divergence between the price and the RSI indicator has formed on the daily chart showing that momentum conditions are deteriorating.

Given the proximity to key resistance and the large divergence forming on the daily chart, we are of the view that the near term upside from here is likely to be limited and the stock is vulnerable to a deeper pull back.

A break below minor support of $2.75 would suggest that a top reversal pattern is in place which could trigger a decline to $2.50.

Elders (ELD) – At resistance

The down trend from the June 2018 high has lost momentum over the past six months and the price has been trading sideways, fluctuating between $5.31 and $7.59.

The current short term up swing has rebounded to its resistance where initial selling pressure is likely to arise.

The RSI and the stochastic indicators have reached overbought territory suggesting that the price is likely to pull back in the short term.

Given the proximity to resistance and the overbought momentum conditions, we are of the view that a decline to at least $6.70 is likely to unfold in the near term.

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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