Technical Analysis: 4 March 2021
About the author:
- Author name:
- By Violeta Todorova
- Job title:
- Senior Technical Analyst
- Date posted:
- 04 March 2021, 4:00 PM
Sonic Healthcare (SHL) – Approaching support
The strong rally from the March 2020 low has lost momentum over the past five months and the price has been trading sideways, fluctuating within the boundaries of a large descending triangle.
The lower highs show that profit takers are becoming increasingly eager around the $36.00 area and suggesting that a slight breach of key support of $31.11 (coinciding with the 32.80% Fibonacci retracement ratio) is possible.
While lower highs are always a concern, we note that the weekly RSI indicator is approaching oversold territory, therefore we see the Fibonacci 50.00% retracement ratio crossing at $29.10 as a very strong support for the stock.
Given the proximity to a band of support and the oversold daily momentum readings, we are comfortable to start accumulating the stock.
The potential upside price target in the month(s) ahead is $35.90.
Monash IVF (MVF) – Double Blessed Buy
MVF has been trading in a slow but steady up trend since March 2020 which is still technically intact.
A large ascending triangle has formed on the daily chart over the past three months, showing that buying interest is building up.
A subsequent break above key resistance of $0.84 is highly likely, which could trigger a fast rally to $0.98.
The daily RSI indicator remains firmly in its bull market range supporting our positive view on the stock.
The current down swing is close to its dynamic support crossing at $0.72 where buying interest is likely to arise.
Given the proximity to support and to oversold momentum levels, we see the current price levels as attractive to buy the stock.
Volpara (VHT) – Double Blessed Buy
VHT has been trading sideways over the past ten months, fluctuating between $1.21 and $1.72. The current short-term down swing has approached its key support where buying interest is likely to arise.
The daily RSI indicator has reached oversold levels suggesting that the price is likely to bounce soon. The first potential upside price target is $1.50, followed by $1.70 in the coming months.
Given the proximity to key support and the oversold momentum conditions, we see the current price levels as attractive to buy the stock.
Frontier Digital Ventures (FDV) – Approaching support
FDV has been trading in a strong up trend since March 2020 which is still technically intact.
The current short-term down swing has approached a band of previous multiple support/resistance area between $1.16 and $1.20 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 soon.
Given the proximity to a band of support and the oversold momentum levels, we see any further short-term share price weakness from here as a great opportunity to accumulate the stock.
The potential upside price target is $1.45, followed by $1.55.
GPT Group (GPT) – Ready to breakout
GPT has been trading in a slow but steady up trend since March 2020 which is still technically intact. The recent short-term down trend line has been broken upwards suggesting that the pull back is most likely complete.
The RSI indicator completed a bottom reversal pattern from oversold territory suggesting that higher prices are likely to unfold in the month(s) ahead.
Given the improvement in the price structure and in the momentum conditions, we are of the view that a break above minor resistance of $4.46 is likely to occur soon.
The initial upside price target is $4.90. Over the long-term, higher price levels appear achievable.
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