Technical Analysis: 26 April 2021
About the author:
- Author name:
- By Violeta Todorova
- Job title:
- Former Senior Technical Analyst
- Date posted:
- 26 April 2021, 11:30 AM
Goodman Group (GMG) – Approaching resistance
The up trend from the March 2020 low has lost momentum over the past seven months and the price has been trading sideways fluctuating between $16.37 and $20.07.
The current short-term up swing is approaching its all-time high where initial resistance could arise.
The daily RSI and MACD indicators have reached overbought territory suggesting that a short-term pull back to unwind the daily overbought momentum conditions could unfold soon.
The weekly momentum indicators remain constructive at this point and a subsequent break above $20.07 is likely. The potential medium-term upside price target is $21.00.
JB Hi-Fi (JBH) – Short-term weakness
The up trend from the March 2020 low has lost momentum over the past eight months and the price has been trading sideways, fluctuating between $42.30 and $55.25.
The recent short-term up swing lost momentum around its previous all-time high and a small bearish descending triangle has formed over the past month.
Friday’s price action broke below minor support of $50.78 suggesting that further weakness is likely to unfold in the weeks ahead.
The potential short-term downside price target is $47.50. Over the medium-term, our view on the stock is neutral and we favor further consolidation in the months ahead.
Wesfarmers (WES) - Overbought
The up trend from the March 2020 low has lost momentum over the past three months and the price has been trading sideways, fluctuating between $49.01 and $56.40.
The current short-term up swing has re-visited its all-time high of $56.40 where initial selling pressure is likely to arise. The daily RSI and MACD indicators have reached overbought levels pointing to a likely short-term pull back.
A break below minor support of $54.89 would suggest that a short-term top is in place and likely trigger a pull back to $52.00.
Over the medium-term, our view on the stock is neutral and we favor further consolidation in the coming months.
ALS (ALQ) – Tracking well
The secondary up trend from the March 2020 low has lost momentum over the past few months and the price has been trading sideways, fluctuating between $9.15 and $11.69.
The recent short-term down swing has lost momentum and the price action has been consolidating within the boundaries of a bullish ascending triangle over the past month.
A break above minor resistance of $10.32 is highly likely in our view and could trigger a rally to $11.50 in the weeks ahead.
Overall, the price action and the momentum conditions remain constructive and we favor higher prices in the near-term. The current price levels present an opportunity to accumulate the stock.
De Grey Mining (DEG) – Lifting our target
In our last update on the 18th of March 2021 we discussed the likelihood of a new secondary up trend starting and recommended clients buy the stock.
A strong rally has unfolded over the past month and our price target of $1.40 has now been reached and exceeded. Friday’s price action posted a strong and bullish candle and broke above key resistance of $1.60.
The daily and weekly momentum indicators remain in a bull market range suggesting that higher price levels are likely to unfold in the medium to long-term.
The stock remains one of the best performing in the sector over the past two years and we favor further outperformance. Therefore, we lift our medium-term upside price target to $1.80.
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