Technical Analysis: 16 October 2020

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
16 October 2020, 11:40 AM

Origin Energy (ORG) – Double Blessed Buy

Origin Energy (ASX:ORG) has been trading in a secondary down trend over the past four months which is still technically intact.

The current down swing has approached a band of support between $3.75 and $4.20 which appears solid and is likely to hold.

A higher low is forming on the daily chart suggesting that buying interest started building up.

A break above minor resistance of $4.64 would confirm that a small bottom is in place and is likely to trigger higher prices in the near-term.

The first potential upside price target based on the anticipated breakout is $5.00.

Over the medium-term, levels to $5.50 are easily achievable in our view.

Given the proximity to a key support level and the oversold weekly and daily readings, we are comfortable to buy the stock around current price levels.

Pro Medicus (PME) – Lifting our target

In our last update on the 20th of August 2020 we discussed that a break above dynamic resistance of $26.00 appeared to us to be imminent and that higher prices are likely to unfold in the near-term.

A strong rally has unfolded over the past month and our upside price target of $29.00 has now been reached.

Thursday’s price action broke above its key resistance of $30.37 suggesting that higher prices are likely to unfold over the medium-term.

The first potential upside price target based on the breakout is $33.00. Over the long-term, levels to $36.00 appear achievable.

GPT Group (GPT) – Bullish breakout

GPT Group (ASX:GPT) has been trading sideways over the past six months fluctuating between $3.58 and $4.68.

The latest down swing has retraced close to its support of $3.58, where strong buying interest was seen and from where the price has bounced.

The recent price action broke above minor resistance of $4.05 suggesting that a new secondary up swing is underway.

The first potential upside price target is $4.68, where initial selling pressure could arise.

The daily RSI indicator remains constructive at this point and we are of the view that a subsequent break above resistance is likely to occur.

Such potential upside breakout would signal an extension of the rally from the March 2020 low with a medium-term upside price target of $5.20.

Beacon Lighting (BLX) – Bullish breakout

Beacon Lighting (ASX:BLX) has been trading in a strong up trend since March 2020 which is still technically intact.

The RSI indicator is firmly in its bull market range and the price remains above its medium-term up trend line, both showing that momentum is still strong.

Thursday’s price action broke above resistance of $1.40 and has confirmed an ascending triangle.

The pattern has bullish prognosis and suggests that the secondary up trend is likely to extend further.

The initial upside price target based on the breakout is $1.60, however this level could be exceeded.

Mirvac Group (MGR) – Bullish breakout

Mirvac Group (ASX:MGR) has been trading sideways over the past six months fluctuating between $2.00 and $2.61.

The latest down swing has retraced to its support where the price has established a base over the past month.

The recent price action broke above its minor resistance of $2.20 suggesting that a new up swing has started.

The first potential upside price target based on the breakout is $2.61.

The daily RSI indicator remains constructive and the weekly RSI completed a bottom reversal pattern from oversold levels.

Given the improvement in the weekly momentum conditions, we are of the view that a subsequent break above resistance of $2.61 is likely to occur, which in turn would signal the extension of the rally to $2.90 over the medium-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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