Technical analysis: 14 September 2020

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
14 September 2020, 4:40 PM

Karoon Energy (KAR) – Double Blessed Buy

Karoon Energy (ASX:KAR) has been trading in a secondary up trend since March 2020 which is still technically intact.

The current short-term pull back has retraced to its previous support of $0.68 and its medium-term up trend line where 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 initial upside price target is $0.80.

Over the medium-term, levels to $0.95 are achievable.

Given the proximity to static and dynamic support and the oversold momentum levels, we are comfortable to buy the stock at current price levels.

Red 5 (RED) – Overbought

The up trend from the November 2018 low has lost momentum over the past year and the price has been trading sideways, fluctuating between $0.17 and $0.40.

The recent up swing has rebounded to a band of resistance between $0.35 and $0.40 where initial selling pressure is likely to arise.

The RSI and the MACD indicators have reached overbought territory suggesting that the price is vulnerable to a pull back in the short-term.

Given the proximity to key resistance and the overbought momentum levels we are of the view that the near-term upside from here is likely to be limited.

Vocus Communications (VOC) – Overbought

The up trend from the November 2018 low has lost momentum over the past year and the price has been trading sideways, fluctuating between $0.17 and $0.40.

The recent up swing has rebounded to a band of resistance between $0.35 and $0.40 where initial selling pressure is likely to arise.

The RSI and the MACD indicators have reached overbought territory suggesting that the price is vulnerable to a pull back in the short-term.

Given the proximity to key resistance and the overbought momentum levels we are of the view that the near-term upside from here is likely to be limited.

IPH Limited (IPH) – Double Blessed Buy

The recovery from the March 2020 low has lost momentum and over the past three weeks the price has been trading in a correction mode.

The current short-term down swing has retraced to its long-term up trend line crossing at $6.50 and close to its March low of $6.01 where strong buying interest is likely to arise.

The RSI indicator has reached oversold territory suggesting that the price is likely to bounce in the short-term.

Given the proximity to static and dynamic support and the oversold momentum conditions, we see the current technical set up as a great opportunity to buy the stock.

The initial upside price target is $7.80. 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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