Technical Analysis: 23 November 2020

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
23 November 2020, 8:00 AM

Estia Health (EHE) – Bullish breakout

The recovery from the March 2020 low has lost momentum over the past six months and the price has been trading sideways, fluctuating between $1.26 and $1.75.

Friday’s price action decisively broke above its key resistance of $1.75 confirming a large rectangle. The pattern has bullish prognosis and suggests that higher prices are likely to unfold over the medium-term.

The RSI indicator entered its bull market range also pointing to higher prices in the coming months. The potential medium-term upside price target is $2.25.

Over the long-term higher prices are achievable. In the short term, the price may experience a mild pull back as the momentum indicators have reached overbought territory.

Such potential short-term share price weakness would provide a buying opportunity.

SCA Property Group (SCP) – Bullish breakout

The sell off from the February 2020 high has lost momentum over the past eighth months and the price has been trading sideways, fluctuating between $1.97 and $2.50.

The current short-term up swing has broken above its key resistance suggesting that a large bottom is now in place and that a new secondary up trend is likely to get underway.

The initial upside price target based on the breakout is $2.80, however over the long-term higher price levels are achievable.

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

FlexiGroup (FXL) – Ready to breakout

The rebound from the March 2020 low has lost momentum over the past five months and the price has been trading lower, fluctuating within the boundaries of a down trend channel.

The leading RSI indicator entered its bull market range on Friday showing significant improvement in momentum.

This suggests that there is a strong probability of the price breaking above its channel.

The first potential upside price target is $1.48, followed by $1.70 over the medium-term. In the short-term, the price is likely to pull back as the RSI and the stochastic indicators have reached overbought levels.

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

Data#3 (DTL) - Accumulate

After reaching an all-time high of $7.30 and strongly overbought and diverging momentum conditions, a pull back took place over the past month.

The current short-term down swing has retraced to its previous support of $5.00 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 initial upside price target is $6.00, however higher price levels are achievable over the medium-term.

Given the proximity to minor support and to oversold momentum levels, we are comfortable to start accumulating the stock around current prices.

ResMed Inc (RMD) - Overbought

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

The current short-term up swing has lost momentum over the past week and the price has been trading sideways, fluctuating within the boundaries of a small descending triangle.

The RSI and the MACD indicators have turned lower from overbought levels suggesting that the price is likely to decline in the short-term.

The initial downside price target is $27.50.

Over the long-term, we continue to like the stock and see the potential coming pull back as an opportunity to add to positions. We will provide an update with suggested entry levels in the weeks ahead.

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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