Technical analysis: 17 September 2020

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
17 September 2020, 10:22 AM

TPG Telecom (TPG) – Double Blessed Buy

The decline from the July 2020 high has lost momentum over the past month and the price has been trading sideways, fluctuating between $7.07 and $8.41.

The current short-term down swing has retraced close to its support of $7.07 where initial buying interest is likely to arise.

The RSI indicator has approached oversold territory suggesting that the price is likely to bounce soon.

The stochastic indicator is turning up from oversold levels pointing to a likely rise in the short-term.

The initial upside price target is $8.00, however levels to $8.40 are achievable.

Given the proximity to support and the oversold momentum levels, we see the current price levels as attractive to buy the stock.

Alliance Aviation Services (AQZ) – Double Blessed Buy

Alliance Aviation Services (ASX:AQZ) has been trading in a strong secondary up trend since March 2020 which is still technically intact.

The daily momentum conditions remain constructive at this point and suggest that higher prices are likely to unfold in the near-term.

A break above the all-time high of $3.77 would confirm a rectangle pattern which would signal the continuation of the secondary rally.

The potential upside price target based on the potential breakout is $4.00.

Any short-term share price weakness would provide a buying opportunity.

Megaport (MP1) – Heading higher

Megaport (ASX:MP1) has been trading in a strong 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 $14.20, where support is likely to hold and buying interest is likely to start building up.

The RSI indicator is above 40% showing that momentum is still strong.

The stochastic indicator has turned up from oversold territory suggesting that the price is likely to bounce in the short-term.

The initial upside price target is $18.00, however this level could be exceeded.

Home Consortium (HMC) – Double Blessed Buy

The secondary rally from the March 2020 low has lost momentum over the past three months and the price has been trading sideways, fluctuating between $2.61 and $3.29.

The RSI indicator has been firmly in the bull market range while the price has been consolidating, suggesting that an upward breakout is highly likely to occur.

A break above resistance of $3.29 will confirm the continuation of the up trend and is likely to trigger an extension of the rally to $3.60.

Over the medium-term, levels to $3.80 appear easily achievable.

Breville Group (BRG) – Heading higher

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

The RSI indicator has been firmly in the bull market range over that period showing that momentum is still strong.

The stochastic indicator has turned up from oversold territory suggesting that the price is likely to bounce in the short-term.

The initial upside price target is $30.00. Over the medium-term, levels to $32.00 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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