Technical analysis: 15 March 2021

About the author:

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

Coles Group (COL) – Double Blessed Buy

The primary up trend has lost momentum over the past year and the price has been trading sideways, fluctuating between $14.95 and $19.26. The current down swing has retraced close to the bottom of its range, where strong buying interest is likely to arise.

The selling pressure has eased over the past two weeks and the stock has been in the process of forming a small base.

The RSI and the MACD indicators have reached oversold territory suggesting that the price is likely to bounce soon. A break above minor resistance of $15.86 would signal that the correction is complete and trigger a rally to $17.00 in the short-term.

Over the medium-term, levels to $18.50 appear easily achievable. Given the proximity to key support and the oversold momentum conditions, we see the current price levels as attractive to buy the stock.

Adairs (ADH) - Accumulate

The secondary up trend from the March 2020 low has lost momentum over the past five months and the price has been trading sideways, fluctuating between $3.04 and $4.45. The current short-term down swing has retraced to its minor support of $3.44 where the selling pressure is likely to start easing.

The RSI and the MACD indicators have approached oversold levels suggesting that the current decline is likely to be arrested soon.

Given the proximity to a band of support between $3.04 and $3.44, we see the short-term downside from here as limited. The current short-term share price weakness presents an opportunity to accumulate the stock. The potential upside price target is $4.40.

Data#3 (DTL) - Accumulate

The primary up trend has lost momentum over the past five months and the price has been trading sideways, fluctuating between $4.70 and $7.30. The current short-term down swing has approached its key support of $4.40 where strong buying interest is likely to arise.

The leading RSI indicator completed a small bottom reversal pattern suggesting that the price is likely to bounce in the short-term. The stochastic indicator formed a bullish divergence on the daily chart also pointing to a likely rebound in the short-term.

The first potential upside price target is $5.50 followed by $6.00. Over the medium-term, levels to $7.00 are achievable. Given the proximity to key support and the oversold momentum conditions, we see the current price levels as attractive to buy the stock.

Insurance Australia Group (IAG) - Buy

The secondary down trend has lost momentum over the past six months and the price has been trading sideways, fluctuating between $4.30 and $5.49. The current short-term pull back has retraced close to its key support where buying interest is likely to arise.

The RSI and the MACD indicators have reached oversold territory suggesting that the price is likely to bounce in the short-term. The first potential upside price target is $5.00 followed by $5.50.

The momentum indicators have moved from bearish into neutral territory suggesting that the selling pressure eased and the price is likely to trade sideways in the coming months. Given the proximity to support and the oversold momentum conditions, we see the current price levels as attractive to buy the stock.

Generation Development Group (GDG) – Double Blessed Buy

GDG has been trading sideways over the past two years fluctuating between $0.42 and $0.89. The latest pull back has lost momentum and the price has been trading between $0.61 and $0.72.

The medium-term up trend line on the RSI indicator is still intact showing that the momentum is constructive. Therefore, we see a high probability of the price breaking above minor resistance of $0.72 and trading higher in the months ahead.

The potential upside price target is $0.85. We see the current price levels as attractive to buy the stock.

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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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