Technical analysis: 5 July 2021

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Former Senior Technical Analyst
Date posted:
05 July 2021, 9:00 AM

ImpediMed (IPD) – Double Blessed Buy

The up trend from the March 2020 low has lost momentum over the past eighth months and the price has been trading in a correction mode.

The current down swing has retraced to its previous multiple support of $0.097 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 its previous support and the oversold momentum conditions, we see the current share price weakness as an opportunity to buy the stock. The initial upside price target is $0.135. Over the medium-term, levels to $0.145 are achievable.

The A2 Milk Company (A2M) – Improvement in momentum

After posting a record high of $20.05 in June 2020 the primary up trend reversed course and the stock has been trading in a steep and consistent down trend.

The latest down swing has retraced to $5.04 in May 2021 reaching strongly overbought territory. The decline has lost momentum and over the past month the price has been trading within the boundaries of a small ascending triangle showing that the buyers are stepping in.

The long-term down trend line marked in red in the chart below has been broken upwards recently showing that the down trend is deteriorating. The RSI indicator broke above its resistance for the first time since the down trend has started, suggesting that the stock is likely to be at a turning point. Given the improvement in the price structure and in the momentum conditions, we are of the view that over the medium-term higher price levels are likely to unfold. The first potential upside price target is $8.00, followed by $9.00 over the medium-term.

Unibail-Rodamco-Westfield (URW) – Tracking well

The down trend from the October 2019 high has clearly lost momentum over the past ten months and the price has been trading in an upward trajectory.

A large inverse head and shoulders pattern has been formed over the past year with the recent upswing breaking above its neckline at $5.79 and thus providing the required confirmation. The pattern has bullish implications over the long-term and confirms that the prior down trend is now complete.

The long-term up trend line on the RSI indicator is still holding support showing that momentum is constructive. Given the improvement in the price structure and in the momentum conditions we are of the view that higher prices are likely to unfold over the long-term. The initial upside price target is $8.00.

Harvey Norman Holdings (HVN) – Heading higher

HVN has been trading in a strong up trend since March 2020 which is still technically intact. The up trend has lost momentum over the past three months and the price has been trading sideways with firm support arising around $5.01.

The current short-term upswing broke above its minor resistance of $5.48 suggesting that the correction from the March 2021 high is most probably complete and that higher prices are likely to unfold in the near-term.

The potential upside price target in the weeks ahead is $6.00. Over the long-term, a break above resistance of $6.09 would suggest an extension of the primary up trend with a potential upside price target of $6.25.

IDP Education (IEL) – Lifting our target

In our last update on the 7th of May 2021 we discussed number of bullish developments on the chart and recommended clients buy the stock in the range between $20.00 and $21.00.

A strong rally has unfolded over the past two months and our initial upside price target of $24.50 has now been reached and exceeded. Last week’s price action broke above its key resistance of $29.22 suggesting that higher price levels are feasible over the long-term. The potential long-term upside price target is $31.25.

The weekly and daily momentum indicators have reached overbought territory suggesting that the price is likely to pull back soon. Such potential short-term share price weakness would provide an opportunity to add to positions. We will provide an update in due course. 

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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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