Technical Analysis: 12 February 2021

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
12 February 2021, 8:00 AM

Inghams (ING) – Lifting our target

In our last update on the 7th of November 2020 we discussed number of bullish developments emerging on the chart and the likelihood of the price trading higher in the near-term.

A strong rally has unfolded over the past and the current up swing has rebounded close to our target of $3.77.

While the stock is overbought on a short-term basis and a mild decline could be seen in the week ahead, we that the daily RSI indicator has moved into its bull market range for the first time over the past two years, which is a very encouraging development for the bulls.

The weekly RSI indicator broke above its bear market resistance suggesting that the primary down trend from the February 2019 high is likely to reverse direction.

Given the improvement in the daily and weekly momentum conditions, we are of the view that a subsequent break above key resistance of $3.77 has a high probability, which would confirm that the primary down trend is over.

We see a good probability of the August 2019 gap to be filled, therefore we lift our longterm upside price target to $4.00.

Tyro Payments (TYR) - Accumulate

After re-visiting its key resistance of $4.53 for the third time in October 2020, the rally lost momentum and a pull back took place.

The price retraced to its 61.80% Fibonacci retracement ratio crossing at $2.30 where initial buying interest is likely to arise. The MACD indicator has reached oversold territory suggesting that the price is likely to rally in the short-term.

While at this juncture in time there is no clear sign the correction is reversing course, given the proximity to dynamic Fibonacci support and to oversold momentum levels, we are of the view that the near-term down side from here is likely to be limited and that the price is likely to bounce in the near-term.

Distribution analysis shows that the price spends most of the time above $3.15 and price swings below that level are usually short-lived.

We see a good probability of the stock rallying to $3.20 in the short-term and then to $3.60 over the medium-term.

Suncorp Group (SUN) – Lifting our target

In our last update on the 24th of August 2020 we discussed number of bullish developments on the chart and the likelihood of the price trading higher in the near-term.

Initially the price traded against our expected direction, however firm support was finally found in November 2020 from where the price rallied strongly over the past few months.

The current short-term up swing exceeded our price target of $10.80 and breached its key resistance, showing that buying interest is building up.

While the stock might pull back to unwind its overbought momentum conditions in the short-term, we see a good probability of the price trading higher over the medium to long-term. Therefore we lift our price target to $11.80.

Cooper Energy (COE) – Double Blessed Buy

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 year with the price posting only marginally lower lows showing that the bears are losing conviction.

The current short-term down swing has retraced to its previous and multiple key support of $0.29, which stood the test of time more than seven times and where initial buying interest is likely to arise.

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

Given the proximity to key support and the oversold momentum levels, we see the current share price weakness as a great opportunity to buy the stock. The potential upside price target is $0.40.

Newcrest Mining (NCM) – Double Blessed Buy

NCM has been trading sideways over the past two years fluctuating between $20.70 and $38.87.

The current secondary down trend has retraced close to its band of support between $20.70 and $23.53 where initial buying interest is likely to arise.

A large bullish divergence between the price and the RSI indicator has formed on the daily chart suggesting that the down trend might be approaching a turning point.

The weekly RSI and MACD indicators have reached oversold territory suggesting that the short-term downside form here is likely to be limited and that the price is likely to rebound in the months ahead.

Given the proximity to a previous multiple support and resistance around $24.00, the oversold weekly and the improving daily momentum conditions, we are comfortable to buy the stock around current price levels.

The first potential upside price target is $28.00 followed by $30.00 over the medium-term.

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