Technical analysis: 17 June 2021

About the author:

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

ResMed Inc (RMD) – Target reached

In our last update on the 29th of April 2021 we discussed the likelihood of the secondary up trend to extend further and we lifted our medium-term upside price target to $29.50.

After initial pull back to unwind the overbought momentum conditions the price re-gained momentum and a strong rally unfolded over the past month. The current short-term up swing broke above its key resistance of $30.08 showing that sentiment remains strong.

The daily RSI indicator has reached strongly overbought territory suggesting that a pull back is likely to take place soon. While we continue to like the stock over the long-term and we are of the view that levels to $33.00 are achievable, we see the current short-term share price strength as an opportunity to lighten positions.

Lifestyle Communities (LIC) – Bullish breakout

LIC has been trading in a strong up trend since March 2020 which remains firmly intact. The up trend took a breather over the past four months and the price has been trading sideways, fluctuating within the boundaries of a bullish ascending triangle.

Wednesday’s price action broke above its key resistance of $14.85 suggesting that the up trend is likely to extend further over the medium-term. The potential upside price target based on the breakout is $17.35.

In the short-term, the price may experience a pull back as the momentum indicators have reached overbought territory. Such potential short-term share price weakness would provide an opportunity to add to positions.

Magellan Financial Group (MFG) – First target reached

In our last update on the 14th of May 2021 we discussed the proximity to support of $42.01 and to oversold momentum levels and recommended clients to buy the stock.

The price rebounded over the past month and our initial upside price target of $50.00 has now been reached. We clearly note an improvement in the price structure and in the momentum conditions over the past month and we are of the view that the stock is approaching the completion of the base building process.

The current short-term up swing breached its resistance of $51.38 showing that buying interest is building up. A subsequent decisive break above this level is likely, which would confirm that the correction from the August 2020 high is complete and that a new secondary up trend has started. Our medium-term upside price target of $56.00 remains unchanged. In the short-term, the price may experience a mild pull back to unwind its overbought momentum readings. We see such potential short-term share price weakness as an opportunity to add to positions. 

Cochlear (COH) – Target reached

In our last update on the 15th of January 2021 we discussed number of bullish developments emerging on the chart and rated the stock as a high conviction buy.

The price rebounded strongly over the past five months and our medium-term upside price target of $220.00 has now been reached and exceeded.

While at this point there is no clear reversal signal evident on the chart, we note that the current up swing is approaching its static and dynamic resistance of $254.40 where selling pressure is likely to arise. The weekly and daily RSI indicator has reached overbought levels suggesting that the short-term rally is likely to be arrested soon and that the price is vulnerable to a pull back.

Megaport Limited (MP1) – Approaching resistance

In our last update on the 11th of January 2021 we discussed that the near-term downside is likely to be limited and the price is likely to rebound.

A strong rally has unfolded over the past ten weeks and the current up swing is approaching its key resistance of $17.67 where selling pressure is likely to arise.

The weekly and daily RSI indicator has reached overbought territory suggesting that the rally is likely to take a breather soon. Although at this juncture in time there is no reversal signal evident on the chart, given the proximity to key resistance and to overbought momentum levels, we are of the view that the short-term upside from here is likely to be limited.

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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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