Technical Analysis: 16 April 2021
About the author:
- Author name:
- By Violeta Todorova
- Job title:
- Senior Technical Analyst
- Date posted:
- 16 April 2021, 12:00 PM
Pendal Group (PDL) – Lifting our target
In our last update on the 4th of February 2021 we discussed the likelihood of the price rallying in the short-term and our price target of $7.50 has now been reached.
A large imperfect ascending triangle has formed over the past year showing that buying interest is building up and that higher prices are likely to unfold over the long-term.
A subsequent break above resistance of $7.50 is likely and would confirm the bullish pattern. The potential long-term upside price target based on the expected breakout is $8.50.
In the short-term, the price may experience a mild pull back as the RSI indicator has reached overbought levels.
We see such potential short-term share price weakness as an opportunity to add to positions.
Computershare (CPU) – Ready to breakout
CPU has been trading in a slow but steady secondary up trend since March 2020 which is still technically intact.
The up trend has lost momentum over the past five months and the price has been trading sideways taking a breather.
The RSI indicator remains in its bull market range suggesting that higher prices are likely to unfold in the coming months.
A break above resistance of $15.35 is highly likely and would confirm the continuation of the up trend.
The first potential upside price target is $16.50 followed by $17.50 over the medium-term.
Centuria Office REIT (COF) – Tracking well
In our last update on the 11th of March 2021 we discussed number of bullish developments on the chart and the likelihood of the price trading higher in the short-term.
The weekly and daily momentum conditions remain constructive pointing to higher price levels in the coming months. The current up swing has approached its minor resistance of $2.13 which is likely to be broken upwards subsequently.
Once resistance of $2.13 is broken the way to $2.35 would be cleared. Over the long-term, higher price levels are achievable.
Any short-term share price weakness to unwind the overbought stochastic readings would provide an opportunity to add to positions.
Gold Road Resources (GOR) - Buy
GOR has been trading sideways over the past two years fluctuating between $0.80 and $2.02.
The current secondary down trend has lost momentum over the past month and the price has been consolidating within the boundaries of a bullish ascending triangle.
A large bullish divergence between the price and the RSI indicator has formed throughout October 2020 and March 2021 suggesting that the down trend is likely to be at a turning point.
A decisive break above resistance of $1.26 is likely and would confirm that a new secondary up trend is underway.
The first potential upside price target is $1.50 followed by $1.70 over the medium-term.
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Disclaimer: 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.