Technical Analysis: 20 November 2020

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
20 November 2020, 10:00 AM

Orocobre (ORE) – Lifting our target

In our last update on the 21st of September 2020 we discussed the likelihood of the price trading higher in the near term and recommended clients buy the stock.

A strong rally has unfolded over the past two weeks and our second upside target of $3.60 has now been almost reached.

A higher low has clearly formed on the chart and we are of the view that a large bullish inverse head and shoulders pattern has been developing over the past year.

Given the improving price structure, we are of the view that the price is likely to extend its run further and re-test its key resistance of $3.96.

A subsequent break above this level would confirm that the down trend from the February 2018 high is over and that a new primary up trend is starting.

AGL Energy (AGL) - Accumulate

AGL has been trading in a primary down trend since April 2017 which has been unfolding within the boundaries of a down trend channel.

The current down swing has declined to its channel line crossing at $12.50, which is also a key support level for the stock.

Therefore, we are of the view that initial support and buying interest is likely to arise around current price levels.

The weekly momentum indicators have reached oversold territory suggesting that the price is likely to rally in the months ahead.

The daily RSI indicator completed a bottom reversal pattern from oversold territory suggesting that the price is likely to bounce from here.

Given the proximity to static and dynamic support, we are comfortable to start accumulating around current prices. The potential upside price target is $15.00.

APN Industria REIT (ADI) – Buy on weakness

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

The recent price action broke above resistance of $2.79 and has confirmed a large ascending triangle.

The pattern has bullish implications and suggests that higher prices are likely to unfold in the coming months.

The potential upside price target based on the breakout is $3.20.

The weekly and daily momentum conditions are constructive, adding further confidence in the positive outlook for the stock.

In the short-term, the price could experience a mild pull back as the RSI indicator has reached overbought territory.

Such potential short-term share price weakness would provide an opportunity to buy the stock.

Charter Hall Retail REIT (CQR) – Bullish breakout

The sharp decline from the February 2020 high has lost momentum over the past eight months and the price has been trading sideways, fluctuating within the boundaries of a large ascending triangle pattern.

The key resistance of $3.69 has now been decisively broken, suggesting that higher prices are likely to unfold over the medium to long-term.

The potential upside price target based on the breakout is $4.50.

In the short-term, the price may experience a mild pull back as the momentum indicators have reached overbought levels.

Any short-term share price weakness from here would provide a good opportunity to buy the stock.

GPT Group (GPT) – Lifting our target

In our last update on the 16th of October 2020 we discussed the likelihood of the price trading higher in the short-term and subsequently breaking above key resistance of $4.68.

A strong rally has unfolded over the past few weeks and key resistance has now been cleared.

The RSI indicator has moved into its bull market range, suggesting that higher prices are likely to unfold over the medium-term.

The weekly RSI indicator broke above its medium-term down trend line, also pointing to higher prices in the months ahead.

Given the improvement in the weekly and daily momentum conditions over the past few weeks, we lift our medium-term upside price target from $5.20 to $5.60.

More information

Morgans clients can login to view all recent technical analysis on companies we cover by browsing the research section and filtering by 'technical analysis' in the Market Updates section. If you are interested in finding out more, please contact your nearest Morgans office.

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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