Technical analysis: 8 July 2021

About the author:

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

Lend Lease Corporation (LLC) - Accumulate

LLC has been trading sideways over the past year fluctuating between $9.34 and $14.88.

The recent down swing has retraced close to its key support of $9.34 where strong buying interest is likely to start building up. The daily RSI indicator has bounced from oversold territory suggesting that the price is likely to rally in the short-term.

Given the proximity to key support and to oversold momentum levels we see the current share price weakness as an opportunity to accumulate the stock. The first potential upside price target is $12.50. Over the medium-term, levels to $13.50 are achievable.

Nanosonics (NAN) – Double Blessed Buy

The decline from the January 2021 high has lost momentum over the past four months and the price has been trading sideways fluctuating between $4.88 and $6.47.

The current short-term down swing has retraced close to its previous support of $4.88 where buying interest is likely to start building up. The RSI indicator has approached oversold territory suggesting that the price is likely to bounce soon.

Given the proximity to support and to oversold momentum levels, the current share price weakness provides an opportunity to buy the stock. The first potential upside price target is $5.60. Over the medium-term, levels to $6.40 are achievable.

Flight Centre Travel (FLT) - Accumulate

FLT has been trading in a slow but consistent up trend since March 2020 which is still technically intact. The current secondary decline retraced to its long-term up trend line crossing at $14.30 where support is likely to hold.

The decline has clearly lost momentum over the past two months and the price has been trading sideways fluctuating within the boundaries of a narrow range between $14.02 and $16.27. The down trend line from the March 2021 high has been broken upwards recently showing that the correction is deteriorating. 

A subsequent break above minor resistance of $16.27 is highly likely and could trigger a rally to $18.00. Over the medium-term, levels to $20.00 are achievable. Any short-term share price weakness to unwind the overbought stochastic readings would provide a great opportunity to buy the stock. Our ideal entry is below $15.00.

Zip Co (Z1P) – Double Blessed Buy

Z1P has been trading in a correction mode since February 2021 which now appears to be reversing direction. The medium-term down trend line has been decisively broken recently showing that the buyers are gaining momentum. The daily momentum conditions are improving and we are of the view that higher prices are likely to unfold over the medium to long-term. 

In our last update on the 24th of June 2021 we discussed the stock is likely to pull back in the very short-term to unwind its overbought stochastic readings. The price declined to its short-term up trend line crossing at $7.20 where buying interest is likely to arise.

The stochastic indicator has reached oversold levels suggesting that the price is likely to bounce in the short-term. We are of the view that the anticipated pull back is complete and we see the current price levels presenting a good opportunity to buy the stock. The first potential short-term upside price target is $9.00 and our medium-term target of $10.50 remains unchanged.

Waypoint REIT (WPR) – Tracking well

In our last update on the 26th of March 2021 we discussed the likelihood of the price trading higher over the medium-term and recommended clients buy the stock.

A slow but consistent rally has unfolded over the past three months and the stock is heading towards our medium-term upside target of $2.80. The daily RSI indicator is in its bull market range supporting our positive view on the stock. The current short-term pull back has retraced to its medium-term up trend line marked in green in the chart below where buying interest is likely to start building up.

The RSI and the stochastic indicators have reached oversold territory suggesting that the price is likely to bounce in the short-term. Given the proximity to dynamic support and to oversold momentum levels, the current share price weakness presents an opportunity to add to positions.

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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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