Technical analysis: 12 October 2020

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
12 October 2020, 3:00 PM

Jumbo Interactive (JIN) – Double Blessed Buy

Jumbo Interactive (ASX:JIN) has been trading in a secondary up trend since March 2020 which is still technically intact.

The current short-term down swing has retraced to its medium-term up trend line crossing at $12.00 where initial buying interest is likely to arise.

The RSI and the stochastic indicators have reached oversold territory suggesting that the price is likely to bounce in the short term.

The first potential upside price target is $14.00.

Over the medium-term, levels to $16.50 appear achievable.

Given the proximity to dynamic support and the oversold momentum conditions on a short-term basis, we are comfortable to buy the stock at current price levels.

Karoon Energy (KAR) – Bullish breakout

In our last update on the 28th of September 2020 we discussed the oversold nature of the stock and the likelihood of the price trading higher in the short-term.

The price has bounced of support of $0.68 as expected and our short-term upside price target of $0.80 has now been reached.

Friday’s price action broke above resistance of $0.86 and has confirmed a rectangle continuation pattern, which is likely to trigger higher prices in the months ahead.

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

The initial upside price target based on the breakout is $1.00. We lift our medium-term upside price target to $1.10.

Senex Energy (SXY) – Heading higher

Senex Energy (ASX:SXY) has been trading within the boundaries of an up trend channel since March 2020 which is still technically intact.

The recent short-term down swing has retraced to its medium-term up trend line crossing at $0.30 where support is likely to hold and strong buying interest is likely to arise.

The RSI indicator remains firmly in the bull market range showing that higher prices are likely to unfold in the month(s) ahead.

The first potential upside price target is $0.36 followed by $0.40 over the medium-term.

Ramelius Resources (RMS) – Heading higher

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

After reaching a fresh all-time high of $2.53 in September 2020 a short-term pull back to unwind the overbought momentum conditions took place.

The decline has lost momentum over the past two weeks and the price has been trading sideways, building a small base.

Friday’s price action decisively broke above minor resistance of $2.12 suggesting that the correction is likely to be over.

The potential upside price target in the coming weeks is $2.50.

Regis Resources (RRL) – At support

The up trend from the March 2020 low has lost momentum over the past three months and the stock has been trading in a correction mode.

The price retraced to its previous support of $4.89 which is likely to hold and where buying interest is likely to arise.

The RSI indicator has reached oversold levels suggesting that the price is likely to bounce soon.

A break above minor resistance of $5.16 is likely which could trigger a rally to $5.60 in the weeks ahead.

Over the medium-term, levels to $6.00 appear achievable.

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

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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