Technical Analysis: 23 April 2021

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Former Senior Technical Analyst
Date posted:
23 April 2021, 11:30 AM

Coles Group (COL) – Double bottom in the making

COL has been trading sideways over the past year fluctuating between $14.95 and $19.26.

The current secondary down swing has lost momentum over the past month and the price appears to have been in the process of building a double bottom.

The pattern has bullish prognosis and shows that buying interest is building up. The weekly RSI and MACD indicators are turning up from oversold territory suggesting that the price is likely to trade higher in the months ahead.

A break above minor resistance of $16.12 is highly likely in our view and would confirm the double bottom pattern.

The first potential upside price target based on the breakout is $17.00. Over the medium-term, levels to $18.50 are achievable.

CSL Ltd (CSL) – Tracking well

In our last update on the 5th of March 2021 we discussed the likelihood of the price re-testing its key support of $242.67 where we highlighted strong buying interest is likely to arise and recommended clients to use the expected share price weakness to buy the stock.

The price has been trading in an upward trajectory over the past month and although at this point there is no clear sign on the daily chart the secondary decline is reversing course, we are of the view that further share price appreciation is likely in the coming months.

Therefore, we lift our medium-term upside price target from $280.00 to $290.00.

Origin Energy (ORG) - Oversold

The recovery from the March 2020 low has lost momentum over the past ten months and the price has been trading in a secondary down trend.

The current short-term down swing has retraced to a band of support between $3.75 and $3.99 where initial buying interest is likely to arise.

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

The potential upside price target is $4.50. Over the medium-term, we don’t see a reversal of the secondary decline yet and at this juncture in time we only favor a short-term bounce.

Eagers Automotive (APE) – Lifting our target

In our last update on the 14th of January 2021 we discussed the bullish structure of the chart and the likelihood of the price trading higher in the short-term.

A strong rally has unfolded over the past two months and our initial upside price target of $14.80 has now been reached and exceeded.

The current short-term up swing broke above resistance of $15.34 suggesting that higher prices are likely to unfold over the medium-term.

The initial upside price target based on the breakout is $17.70, however over the long-term this level is likely to be exceeded.

Find out more

Morgans clients can login to view all recent technical analysis on companies we cover by browsing the research section and filtering by 'technical analysis' in the Market Updates section. 

If you would like access or more information, please contact your adviser or nearest Morgans office. 

Request a call  Find local branch

Need access to our research?

You are also welcome to start a two-week trial of our online platform, which provides access to detailed market analysis and insights, provided by our award-winning research team

Create trial account 

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.

  • Print this page
  • Copy Link