Technical Analysis: 1 February 2021

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
01 February 2021, 10:00 AM

Cooper Energy (COE) – Approaching key support

COE has been trading in a primary down trend since September 2019 which is still technically intact.

The down trend has lost momentum over the past three months and the price has been trading sideways, fluctuating between $0.29 and $0.41.

The long-term down trend line has been broken upwards recently showing that the down trend is deteriorating and suggesting that the price may be in the process of building a base.

The current down swing is approaching its key support of $0.29 where initial buying interest is likely to arise.

The daily RSI indicator has reached oversold territory suggesting that the decline is likely to be arrested soon.

We see any further weakness from here as an opportunity to buy the stock and our ideal entry is around $0.29. The first potential upside price target is $0.36 followed by $0.40.

Karoon Energy (KAR) – Approaching support

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

The current short-term pull back is approaching its static and dynamic support at $0.90 which appears solid and is likely to hold.

The RSI and the MACD indicators are approaching its bull market support, suggesting that buying interest is likely to arise soon.

Given the proximity to support and to oversold momentum levels, we are of the view that the price is likely to rebound soon.

We see levels to $0.90 as a good opportunity to accumulate the stock.

The first potential upside price target is $1.20. Over the long-term levels to $1.40 are achievable.

Acrow Formwork and Construction Services (ACF)

ACF has been trading in a consistent 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 $0.34 and $0.41.

The current price action is approaching its band of support between $0.34 and $0.36, where initial buying interest is likely to arise.

The daily momentum indicators remain constructive at this point suggesting that the secondary up trend is likely to continue.

Given the proximity to support and to oversold momentum levels, we are of the view that buying interest is likely to arise soon.

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

The first potential upside price target is $0.41, however levels to $0.44 appear achievable over the medium-term.

Alliance Aviation Services (AQZ) – Lifting our target

In our last update on the 4th of December 2020 we discussed the bullish implications from the breakout and lifted our target from $3.70 to $4.20.

Over the past two months the price action continued to be constructive with the daily momentum indicators remaining firmly in the bull market range.

We are of the view that a breakout above resistance of $4.08 has a high probability in the short-term, which would confirm a rectangle pattern and the continuation of the secondary up trend.

Therefore, we see our price target of $4.20 as conservative and we lift it to $4.50.

Mitchell Services (MSV) – Tracking well

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

The pull back from the August 2020 high has lost momentum over the past four months and the price has been trading sideways, fluctuating within the boundaries of a bullish ascending triangle pattern.

The RSI indicator remains firmly in the bull market range suggesting that higher prices are likely to unfold in the months ahead.

We believe a break above resistance of $0.57 is highly likely which could trigger a fast rally to $0.64.

Given the improving structure of the price action over the past few months and the strength of the momentum indicators, we are comfortable to buy the stock before an actual breakout occurs.

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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.

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