Technical analysis: 1 October 2020

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
01 October 2020, 3:23 PM

Volpara (VHT) – Double Blessed Buy

The rally from the March 2020 low has lost momentum over the past five months and the price has been trading sideways, fluctuating between $1.22 and $1.57.

The current price action is close to its support where buying interest is likely to arise.

While the momentum indicators are in neutral territory, which points to further sideways trading in the coming month(s), given the proximity to support, we are comfortable to buy the stock around current price level. The first potential upside price target is $1.43 followed by $1.55.

Over the medium-term, levels to $1.70 are achievable where initial resistance may arise.

Data#3 (DTL) – Buy on weakness

Data#3 (ASX:DTL) has been trading in a strong secondary up trend since March 2020 which is still technically intact.

Yesterday’s price action posted a fresh all-time high of $6.81 pushing the daily RSI and the stochastic indicators into overbought territory.

This suggests that the stock is vulnerable to a pull back in the short-term and we see a good probability of the price retracing to its medium-term up trend line crossing at $5.95 where initial buying interest is likely to arise.

We see such potential short-term share price weakness as an opportunity to buy the stock.

The potential upside price target is $7.05.

Ramelius Resources (RMS) - Accumulate

Ramelius Resources (ASX:RMS) has been trading in a strong secondary up trend since March 2020 which is still technically intact.

The current short-term pull back has retraced close to its support of $1.85 where buying interest is likely to arise.

The daily RSI and stochastic indicators have reached oversold territory suggesting that the price is likely to bounce soon.

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

The potential upside price target is $2.50, however this level could be exceeded.

NEXTDC (NXT) – Buy on weakness

NextDC (ASX:NXT) has been trading in a strong secondary up trend over the past year which is still firmly intact.

The recent price action reached a new all-time high of $12.73 where selling pressure appears to be building up over the past two days.

The stochastic indicator has turned lower from overbought territory suggesting that the price is likely to pull back in the short-term.

In our view, a decline to its medium-term up trend line crossing at $11.30 is likely, where would be looking to accumulate the stock.

The initial upside price target is $12.70. Over the medium-term, higher price levels are achievable.

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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