Technical analysis: 15 June 2021

About the author:

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

Ansell (ANN) - Accumulate

The up trend from the March 2020 low has lost momentum over the past seven months and the price has been trading sideways, fluctuating between $33.23 and $43.17.

The current short-term down swing has approached its static and dynamic support between $36.00 and $37.93 where initial buying interest is likely to arise.

The daily RSI indicator has approached oversold territory suggesting that the price is likely to bounce soon. Although, our ideal entry is around $35.00, the proximity to support and to oversold levels provides an opportunity to start accumulating the stock.

Zip Co (Z1P) – Double Blessed Buy

After reaching a record high of $14.53 on the 16th of February 2021 and overbought and diverging weekly momentum readings a pull back to unwind the overbought momentum conditions took place.

The down swing has lost momentum over the past month and the price appears to be forming a higher low, which is an encouraging sign and shows that the buyers are stepping in. The medium-term down trend line marked in red in the chart below has been broken upwards last week showing that the decline is deteriorating and suggesting that the down trend from the February 2021 high might be approaching a turning point.

On Friday the daily RSI indicator completed an ascending triangle from oversold territory suggesting that the price is likely to bounce in the short-term. Given the proximity to a previous band of support and the improvement in the price structure, we see a good probability of the price breaking above minor resistance of $7.77 and rallying to $9.00 in the weeks ahead.

TPG Telecom (TPG) – Double Blessed Buy

TPG has been trading in a secondary down trend since listing in June 2020 which is still technically intact.

The recent down swing has pushed the RSI indicator into strongly oversold territory suggesting that the price is likely to rebound in the coming weeks. The medium-term down trend line has been breached last week showing that momentum has started to improve.

A small inverse head and shoulders pattern has been completed on the daily chart suggesting that higher prices are likely to unfold in the near-term. The first potential upside price target is $6.10. Over the medium-term, a re-test of the previous key support of $6.84 is highly likely in our view.  

Mayne Pharma Group (MYX) - Buy

MYX has been trading in a secondary up trend since March 2020 which is still technically intact. The current down swing has retraced close to its dynamic support crossing at $0.35 where support appears solid and is likely to hold.

A higher low appears to be forming on the daily chart showing that buying interest is starting to build up. The MACD indicator has crossed from oversold territory suggesting that the price is likely to bounce in the weeks ahead.

A break above minor resistance of $0.40 is likely in our view and would confirm a small bullish ascending triangle pattern. The first potential upside price target based on the anticipated breakout is $0.45. Over the medium-term, levels to $0.50 are feasible.

Perseus Mining (PRU) – Bullish breakout

In our last update on the 21st of May 2021 we discussed the bullish implications from the breakout of the medium-term down trend line and the likelihood of the price to break above resistance of $1.42.

This resistance was broken last week confirming that the correction from the July 2020 high is now complete and that higher prices are likely to unfold over the medium-term. Our price target of $1.65 remains unchanged.

While the daily RSI indicator has gradually shifted into its bull market range supporting our overall positive view on the stock, it has approached overbought territory, which suggests that the price could pull back in the short-term. Such potential short-term share price weakness would present a buying opportunity.  

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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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