Technical analysis: 21 September 2020

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
21 September 2020, 4:51 PM

Woolworths (WOW) - Accumulate

Woolworths (ASX:WOW) has been trading sideways over the past six months fluctuating between $32.02 and $40.79.

The current short-term down swing is approaching its previous support of $35.66 where initial buying interest is likely to arise.

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

Although at this point there is no clear sign the short-term down swing is reversing course, given the oversold momentum conditions, we are comfortable to start accumulating the stock.

The initial upside price target is $38.00. Over the medium-term, levels to $41.00 are achievable.

People Infrastructure (PPE) – Heading higher

People Infrastructure (ASX:PPE) has been trading in a secondary up trend since March 2020 which is still technically intact.

Friday’s price action broke above minor resistance of $2.93 and has confirmed a small rectangle.

The pattern has bullish prognosis and suggests that the up trend is likely to continue.

The initial upside price target based on the breakout is $3.30. Over the medium-term, higher price levels are achievable.

Any short-term share price weakness would provide an opportunity to accumulate the stock.

Icar Asia (ICQ) – Bullish breakout

The Icar Asia (ASX:ICQ) up trend from the March 2020 low has lost momentum over the past three months and the price has been trading sideways, fluctuating between $0.25 and $0.35.

Friday’s price action broke above resistance of $0.35 suggesting that the secondary up trend is likely to continue.

The RSI indicator remains in the bull market range also pointing to higher prices in the coming weeks.

The potential upside price target based on the breakout is $0.45.

Orocobre (ORE) – Double Blessed Buy

Orecobre (ASX:ORE) has been trading in a primary down trend since January 2018 which is still technically intact.

The weekly RSI indicator has moved into a neutral market range, showing that the down trend is losing momentum and suggesting that the price is likely to trade sideways in the coming months.

The short-term down trend line has been broken upward last week suggesting that the current correction is likely to reverse direction.

A break above minor resistance of $2.86 would confirm the correction is over and is likely to trigger higher prices in the near-term.

The first potential upside price target is $3.30. Over the medium-term, levels to $3.60 are achievable.

Appen (APX) – Buy

Appen (ASX:APX) has been trading in a strong primary up trend over the past ten years which is still technically intact.

After reaching a fresh all-time high of $43.66 in August 2020 and overbought momentum levels on a weekly and daily basis, a correction to unwind the overbought momentum conditions took place.

The current pull back has lost momentum over the past week and the price has been trading in a narrow range, building a small base.

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

The initial upside price target is $36.00. Over the medium-term, levels to $40.00 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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