Technical Analysis: 8 March 2021

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
08 March 2021, 2:30 PM

Westpac Banking Corp (WBC) – Lifting our target

In our last update on the 15th of January 2021 we discussed the bullish implications from the breakout of the large ascending triangle and recommended clients buy the stock.

The price rallied strongly over the past month and our upside price target of $24.00 has now been reached and exceeded.

The weekly RSI indicator broke above its bear market resistance suggesting that higher prices are likely to unfold in the months ahead.

Given the improvement in the price structure and in the momentum conditions, we are of the view that the price is likely to re-visit its long-term down trend, therefore we lift our price target to $27.00.

Alliance Aviation Services (AQZ) – Tracking well

AQZ has been trading in a strong up trend since March 2020 which is still technically intact.

Last month’s price action broke above its resistance of $4.08 suggesting that the up trend is likely to continue.

The current consolidation has retraced to its static and dynamic support crossing at $4.00, where buying interest is likely to arise.

The RSI indicator is firmly in the bull market range also supporting our positive view on the stock.

Given the constructive price structure and positive momentum conditions, we see the current price levels as attractive to accumulate the stock.

The first potential upside price target is 44.80 followed by $5.00 over the medium-term.

Woodside Petroleum (WPL) – Lifting our target

WPL has been trading in an up trend channel since March 2020 which is still technically intact.

The current pull back has retraced to its previous resistance of $23.72 where support is likely to arise.

The RSI indicator bounced of its long-term up trend line suggesting that higher prices are likely to unfold in the weeks ahead.

A break above minor resistance of $26.06 is highly likely, which could trigger higher prices in the month(s) ahead.

Given the constructive price structure and positive momentum conditions, we lift our price target from $26.38 to $29.00.

Northern Star Resources (NST) – Approaching key support

NST has been trading sideways over the past two years fluctuating between $8.85 and $17.03.

The current secondary down trend is approaching a band of support between $7.85 and $8.85 where strong buying interest is likely to arise. T

he daily RSI and MACD indicators have reached oversold territory suggesting that the price is likely to rebound soon.

The weekly momentum indicators are also in oversold levels indicating that the decline is likely to be arrested soon.

Given the proximity to a band of key support and the oversold weekly and daily momentum readings, we see the near-term downside from here as limited.

The first potential upside price target is $11.00 followed by $12.50 over the medium-term.

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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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