Technical Analysis: 26 October 2020

About the author:

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

Aventus Group (AVN) – Double Blessed Buy

Aventus Group (ASX:AVN) has been trading in a secondary up trend since March 2020 which is still technically intact.

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

The current price action has retraced to its static and dynamic support of $2.30 where buying interest is likely to arise.

The RSI indicator has bounced of its support on Friday suggesting that the price is likely to rise in the short-term.

The first potential upside price target is $2.50.

A subsequent break above this level is likely which would trigger an extension of the up trend to $2.70.

APN Industria REIT (ADI) – Double Blessed Buy

APN Industria (ASX:ADI) has been trading in a secondary up trend since March 2020 which is still technically intact.

The up trend has lost momentum over the past four months and the price has been trading sideways, fluctuating within the boundaries of an ascending triangle.

The pattern has bullish prognosis and points to likely higher prices in the months ahead.

The RSI indicator is firmly in its bull market range and is approaching its support, suggesting that the price is likely to bounce soon.

The first potential upside price target is $2.80.

A subsequent break above resistance of $2.80 would confirm the pattern and is likely to trigger higher prices in the coming months.

The potential medium-term upside price target is $3.00.

Zip Co (Z1P) - Accumulate

Zip Co (ASX:Z1P) has been trading in a strong up trend since March 2020 which is still technically intact.

The up trend has lost momentum over the past four months and the price has been trading sideways, fluctuating between $5.55 and $10.64.

The current short-term down swing is approaching its key support of $5.55 which appears strong and is likely to hold.

The RSI indicator is approaching its bull market support suggesting that the price is likely to bounce soon. The first potential upside price target is $8.00.

Over the medium-term, levels to $10.00 are achievable.

Given the proximity to support and to oversold momentum levels, we see a good opportunity to accumulate the stock around $6.00.

Santos (STO) – Double Blessed Buy

The recovery from the March 2020 low has lost momentum over the past four months and the price has been trading within the boundaries of a down trend channel.

The daily RSI indicator completed a bottom reversal from oversold territory, suggesting that higher prices are likely to unfold in the near-term.

A subsequent break above the down trend line crossing at $5.60 is likely in our view.

Such potential upside breakout would confirm the correction is complete and is likely to trigger higher prices in the coming months.

The potential medium-term upside price target is $6.50, however this level could be exceeded.

Coles Group (COL) - Accumulate

Coles Group (ASX:COL) has been trading within the boundaries of an up-trend channel since listing which is still technically intact.

The current short-term down swing is approaching a band of static and dynamic support between $16.00 and $16.73, where initial buying interest is likely to arise.

The RSI and stochastic indicators are approaching oversold territory suggesting that the price is likely to bounce soon.

Given the proximity to its long-term up trend line and the oversold momentum conditions, we are comfortable to start accumulating the stock around current price levels.

The potential upside price target is $20.00.

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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