Technical Analysis: 16 Oct 2013

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Former Senior Technical Analyst
Date posted:
16 October 2013, 1:44 PM

Ardent Leisure (AAD)

AAD has been trading in an up trend over the past year, which remains firmly intact. The latest pull back retraced close to its previous support of $1.77, where strong buying interest is likely to arise. Momentum indicators have turned positive from oversold territory, suggesting that higher price levels are likely to unfold in the near term.

The potential upside price target is in the range between $2.00 and $2.10. Accumulate.

Crown (CWN)

CWN has been trading in an up trend over the past two years, which remains firmly intact. Tuesday's price action broke above resistance of $16.27, confirming a small rectangle pattern. The pattern has bullish implications and suggests that higher price levels are likely to unfold in the near term.

The first potential upside price target is $17.40, however over the longer term higher price levels are achievable. Heading higher.

Freedom Foods (FNP)

FNP has been trading in a strong up trend over the past year, which remains technically intact. Monday's price action broke above key resistance of $2.85, confirming a small rectangle. The pattern has bullish implications and suggests that higher price levels are likely to unfold. The first potential upside price target based on the breakout is $3.24, however over the long term higher prices are achievable. 

Any weakness in the short term would present a great buying opportunity. Double Blessed buy.

Origin Energy (ORG)

ORG has been trading in an up trend over the past year, which remains technically intact. Tuesday's price action broke above resistance of $14.54, confirming a small rectangle. The pattern has bullish implications and suggests that higher price levels are likely to unfold in the near term.

The potential upside price target is $15.10. Heading higher.

QBE Insurance Group (QBE)

The decline from the August 2013 high has lost momentum over the past few weeks and the price appears to have been in the process of building a short term base. A break above minor resistance of $14.89 is likely and will confirm that the correction is completed. 

The first potential upside price target is $15.80, however over the medium term levels towards $18.00 are achievable. Accumulate.

If you are interested in any of these stocks, please contact your nearest Morgans office.

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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