Technical Analysis: 19 October 2020

About the author:

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

Cleanaway Waste Management (CWY) – Heading higher

CWY has been trading sideways over the past two years, fluctuating between $1.40 and $2.62. The price rebounded strongly and has been trading in a strong secondary up trend since March 2020.

The recent pull back has retraced to its previous multiple support around $2.00, where strong buying interest was met.

The RSI and the MACD indicators have turned up from oversold territory suggesting that higher prices are likely to unfold in the weeks ahead.

The first potential upside price target is $2.40 followed by $2.60, where initial resistance is likely to arise.

IDP Education (IEL) – Momentum is still strong

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

The latest up swing has lost momentum over the past two months and the price has been trading sideways, fluctuating between $18.08 and $21.60.

Last week’s price action rebounded from its minor support and is likely to trade higher in the short-term.

The RSI and the MACD indicators remain in the bull market range suggesting that higher prices are likely to unfold in the months ahead.

A subsequent break above resistance of $21.60 has a high probability, which will signal the extension of the current secondary up trend.

The potential upside price target based on the anticipated breakout is $24.00.

Accent Group (AX1) – Bullish breakout

AX1 has been trading in a secondary up trend since March 2020 which is still technically intact.

The medium-term up trend line still provides support, showing that the trend is healthy.

The RSI indicator is firmly in the bull market range and well above its up-trend line showing that momentum is strong.

Friday’s price action broke above minor resistance of $1.79 suggesting the up trend is likely to continue.

The first potential upside price target based on the breakout is $2.00. Over the medium-term, levels to $2.20 appear easily achievable.

Medibank (MPL) – Heading higher

MPL has been trading sideways over the past two years, fluctuating between $2.29 and $3.68.

The secondary down trend from the August 2019 high has lost momentum over the past seven months and the price has been trading sideways, fluctuating between $2.45 and $3.13.

The recent down swing has retraced to its new support level of $2.45 where the price has established a small base over the past month.

Friday’s price action broke above minor resistance of $2.64 suggesting that a new up swing has started.

The first upside price target based on the breakout is $2.90, however levels to $3.10 are likely in the months ahead.

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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