Technical Analysis: 19 November 2020

About the author:

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

Superloop (SLC) – Don’t take off without me on board

The primary down trend from the September 2016 high has lost momentum over the past year and the price has been in the process of building a bullish inverse head and shoulders pattern.

Wednesday’s break above minor resistance of $0.96 suggests that the right shoulder is complete and is likely to trigger a rally to $1.20.

A subsequent break above key resistance of $1.27 is required to confirm the large inverse head and shoulders pattern which will confirm that a new primary up trend has started.

Given the improvement in the price structure, we see a possibility within the next six months such a breakout to occur.

The initial long-term upside price target is $1.60. We see the current price levels providing a great buying opportunity for clients with short and long-term investment time horizon.

Monash IVF (MVF) – Catching a bid

The down trend from the August 2019 high has lost momentum over the past eight months and the price has been in the process of building a large base.

Wednesday’s price action broke on an intra-day basis above key resistance of $0.79 suggesting that a new primary up trend has started.

The weekly momentum conditions improved significantly and support our positive view on the stock over the medium-term.

The initial upside price target based on the breakout is $1.00.

The daily RSI and stochastic indicators have reached overbought territory, both pointing to a likely pull back in the short-term.

We see such potential short-term share price weakness as a great opportunity to buy the stock. Our ideal entry is in the low $0.70’s.

Whitehaven Coal (WHC) – Turning the corner

Whitehaven Coal (ASX:WHC) has been trading in a primary down trend since July 2018 which is still technically intact.

The weekly RSI indicator completed a large bottom reversal pattern from oversold territory, showing improvement in the momentum conditions and suggesting that the down trend has likely approached a turning point.

The weekly MACD indicator has turned higher after being two years in oversold territory, adding further confidence that the price is likely to trade higher.

The daily RSI indicator broke for the first time since the down trend has started its bear market resistance of 66% also pointing to likely higher prices in the months ahead.

A break above its long-term down trend line crossing at $1.45 will be a bullish development and is likely to trigger higher prices over the medium-term.

The potential upside price target is $1.90, however this level is likely to be exceeded over the long-term.

Credit Corp (CCP) – Buy on weakness

The rebound from the March 2020 low has lost momentum over the past six months and the price has been trading sideways, fluctuating within the boundaries of a bullish ascending triangle pattern.

The current up swing broke above key resistance of $21.03 suggesting that a new secondary up trend has started.

The potential medium-term upside price target based on the breakout is $28.00.

In the short-term, the price may experience a mild pull back as the RSI and the stochastic indicators have reached overbought territory.

A decline around the breakout point of $21.00 would provide a great opportunity to buy the stock.

Cromwell Property Group (CMW) – Improvement in momentum

Cromwell Property Group (ASX:CMW) has been trading in a down trend since November 2019, which now appears to be reversing direction.

The current short-term up swing has broken above its key resistance of $0.98 suggesting that a new secondary up trend has started.

The leading RSI indicator broke above 70% showing that momentum has improved for the first time over the past year.

The long-term down trend line marked with red in the chart below has been broken, suggesting that higher prices are likely to unfold in the coming months.

The potential upside price target is $1.15. In the short-term the stock may experience a pull back as the daily momentum indicators have reached overbought territory.

We see a potential decline below $0.95 as an opportunity to buy the stock.

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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