Technical analysis: 28 September 2020

About the author:

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

Santos (STO) - Accumulate

The secondary up trend from the March 2020 low has lost momentum over the past four months and the price has been trading sideways fluctuating between $4.96 and $6.28.

The current down swing has retraced to its support and over the past two weeks the price appears to have been in the process of building a small base.

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

A subsequent break above minor resistance of $5.32 would suggest that the down swing is complete and is likely to trigger a rally to $6.00 in the coming weeks.

Woodside Petroleum (WPL) - Accumulate

The rally from the March 2020 low has lost momentum over the past four months and the price has been trading in a correction mode.

The weekly and daily RSI and stochastic indicators have reached oversold territory suggesting that the price is likely to bounce soon. The daily RSI indicator has been building a small base over the past month and once resistance of 40% is broken upwards the price is likely to follow suit.

Although, at this juncture in time the price is still in a declining mode, given the oversold weekly and daily momentum readings we are comfortable to start accumulating the stock.

The initial upside price target is $21.00, however over the medium-term levels to $23.00 are achievable.

Karoon Energy (KAR) – Heading higher

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

The up trend has lost momentum over the past two months and the price has been trading sideways fluctuating between $0.68 and $0.86.

The current short-term down swing has approached its support where initial buying interest is likely to arise.

The stochastic indicator has reached oversold territory suggesting that the price is likely to bounce soon.

The first potential upside price target is $8.00. Over the medium term, levels to $1.00 are achievable.

PWR Holdings (PWH) – Heading higher

PWH has been trading in a strong secondary up trend since March 2020 which is still technically intact.

The RSI and the MACD indicators remain in the bull market range at this point showing that momentum is still constructive.

The RSI indicator has bounced from oversold territory suggesting that higher prices are likely to unfold in the coming weeks.

The potential upside price target is $5.16 which is a previous multiple resistance and is an important level for the stock.

A subsequent break above this level would have bullish implications and would signal the extension of the uptrend.

While such a breakout appears possible at this time, we will monitor how the price action unfolds from here and provide an update with upgraded price target in due course.

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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