Technical Analysis: 4 March 2021

About the author:

Violeta Todorova
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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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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