Technical Analysis: 25 January 2021

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
25 January 2021, 9:00 AM

HUB24 (HUB) – Target reached

In our last update on the 17th of January 2021 we discussed the bullish implications from the break above resistance of $23.15 and the likelihood of the rally extending further.

The price rebounded strongly last week and our upside price target of $26.69 has been reached and exceeded much faster than originally anticipated.

The weekly and daily RSI indicator has reached overbought territory suggesting that the rally is likely to take a breather and the price is vulnerable to a pull-back in the short-term.

We see a good probability of the price re-testing its previous resistance of $23.15.

While at this point we don’t see a reversal of the primary up trend and we continue to like the stock over the long-term, the current share price strength presents an opportunity for active traders to lighten positions.

Novonix (NVX) – Target reached

In our last update on the 5th of October 2020 we discussed the proximity to key support of $0.82, the oversold momentum conditions and recommended clients buy the stock.

The price built a base throughout October and December and a decisive breakout has occurred in January 2021.

A strong rally has ensued with last week’s price action reaching a fresh all-time high of $2.89.

The weekly and daily momentum indicators have reached strongly overbought territory suggesting that the price is likely to pull back to unwind its overbought momentum conditions.

Although we continue to like the stock over the longterm, we see the current share price strength as an opportunity for active traders to trim positions.

Breville Group (BRG) – Lifting our target

In our last update on the 30th of October 2020 we discussed the proximity to key support of $24.91 and the oversold momentum conditions and recommended clients buy the stock.

A strong rally has unfolded over the past month and our initial upside price target of $28.20 has now been reached and exceeded.

The daily momentum indicators have reached overbought territory suggesting that a pull back in the short-term could be seen soon.

Over the long-term, the price action and the momentum conditions remain constructive and we see a good probability of the rally extending further in the coming months. The next potential long-term price target is $33.00.

Incitec Pivot (IPL) – Target reached

In our last update on the 6th of August 2020 we discussed the bullish implications from the breakout above resistance of $1.89 and recommended clients buy the stock.

The price established a large bullish ascending triangle throughout March and November and an upward breakout occurred in December, taking the price well above our price target of $2.40.

While at this juncture in time there is no reversal signal evident on the chart and the rally could extend further to $3.00, we note that the weekly and daily RSI indicator has reached overbought territory, suggesting that the rally might run out of steam soon and take a breather in the near-term. 

CSL Ltd (CSL) - Buy

After reaching a record high of $342.75 in February 2020 the primary up trend has lost momentum and the price has been trading sideways.

The current short-term down swing has retraced to its previous support of $267.53 and is not far off its key support of $242.67 which is solid and is likely to hold.

The daily RSI and MACD indicators have reached oversold territory suggesting that the price is likely to bounce soon.

The weekly RSI indicator retraced to its long-term support suggesting that buying interest is likely to start building up.

Given the proximity to a band of support and the oversold weekly and daily momentum conditions, we see the current share price weakness as an opportunity to start accumulating the stock.

The first potential upside price target is $280.00 followed by $300.00 over the medium-term. 

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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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