Technical Analysis: 17 January 2021

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By Violeta Todorova

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Senior Technical Analyst

Date posted:

17 January 2021, 9:30 AM

Australian Ethical (AEF) – First target reached

In our last update on the 25th of September 2020 we discussed large number of bullish developments unfolding on the weekly and daily chart and highlighted our high conviction the down trend is reversing course.

We recommended clients buy the stock at $4.47 and our first upside price target of $6.00 has now been reached. The key resistance of $5.07 has been broken upwards recently, confirming that a new secondary up trend has started.

The weekly RSI and MACD indicators have turned up from oversold territory adding further confidence that the down trend from the June 2020 high has reversed course.

The daily RSI indicator has moved into its bull market range suggesting that higher prices are likely to unfold in the coming months.

Our medium-term upside price target of $8.00 remains unchanged and we see any short-term share price weakness as an opportunity to add to positions.

HUB24 (HUB) – Bullish breakout

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

Friday’s price action broke above its resistance of $23.15 confirming a continuation rectangle patter.

The potential medium-term upside price target based on the breakout is $26.69.

While the weekly momentum indicators are approaching overbought levels, the daily momentum conditions are still constructive, supporting our view that the price is likely to trade higher in the coming months.

A pull back in the short-term would present an opportunity to add to positions.

Sezzle Inc (SZL) – Bullish breakout

The sharp sell off from the August 2020 high has lost momentum over the past four months and the price appears to have been in the process of building a large base.

Last week’s price action broke above minor resistance of $6.69 suggesting that the stock has likely bottomed at $5.16 and that higher prices are likely to unfold in the coming months.

The daily RSI indicator broke above its bear market resistance suggesting that the correction is likely to be over.

Given the improvement in the price structure and in the momentum conditions, we are of the view that the price is likely to re-visit its resistance of $8.88. A break above this level appears highly likely and could trigger an extension of the rally to $10.00.

Any short-term share price weakness would provide a buying opportunity.

Monash IVF (MVF) - Accumulate

The down trend from the August 2019 high has lost momentum over the past ten months and the price has been trading sideways, fluctuating within the boundaries of a large bullish ascending triangle.

The long-term down trend line from the August 2019 high has been broken upwards in August 2020 showing that the down trend has lost momentum.

The daily RSI indicator has moved into its bull market range suggesting that higher prices are likely to unfold in the months ahead.

Given the development in the bullish pattern on the daily chart and the improvement in the momentum conditions, we are of the view that the price is likely to break above its key resistance of $0.80.

The first potential upside price target based on the expected breakout is $0.90, however this level could be exceeded.

The RSI and the stochastic indicator are turning higher from oversold territory, therefore we see the current prices as attractive to accumulate the stock.

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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.