Technical Analysis: 15 April 2021
About the author:
- Author name:
- By Violeta Todorova
- Job title:
- Senior Technical Analyst
- Date posted:
- 15 April 2021, 11:00 AM
Siren Gold (SNG) – Bullish breakout
SNG has been trading sideways since listing, fluctuating between $0.34 and $0.86. The current secondary down swing has retraced to its previous support of $0.34, where buying interest has been building up over the past month.
The down trend line has been broken upwards recently showing that the decline is deteriorating and is likely to reverse course.
Wednesday’s price action broke above minor resistance of $0.43 completing a small bottom reversal pattern. This suggests that the correction is most likely over and that higher prices are likely to unfold in the months ahead.
The RSI indicator completed a similar bottom reversal pattern from oversold levels, adding further support to our view that the stock is at a turning point.
The first potential upside price target is $0.55. Over the medium-term, levels to $0.70 appear easily achievable.
Given the proximity to key support and the improvement in the price structure and in the momentum conditions, we see the current price levels as attractive to buy the stock.
Medical Developments (MVP) – Bullish breakout
MVP has been trading sideways over the past two years, fluctuating between $3.76 and $11.78. The recent decline has retraced to its previous support of $5.00 where strong buying interest was met over the past month.
Wednesday’s price action broke above minor resistance of $5.80 confirming a small bottom reversal pattern which suggests that higher price levels are likely to unfold in the weeks ahead.
The RSI indicator broke above its resistance also pointing to a likely rebound from here. The first potential upside price target based on the breakout is $6.50 followed by $7.20 in the coming month(s).
We see the current prices as attractive to buy the stock.
Netwealth Group (NWL) - Buy
The primary up trend from the March 2020 low has lost momentum over the past six months and the price has been trading sideways, which is a correction is time rather than in price.
The correction is clearly lacking momentum with the price action over the past four months posting marginally lower lows.
The current short-term down swing has lost momentum over the past two weeks and the price has been trading sideways building a small base.
Wednesday’s price action breached minor resistance of $14.29 showing that the buyers are stepping in.
The RSI indicator completed a small bottom reversal pattern from oversold territory suggesting that higher prices are likely to unfold in the short-term.
The first potential upside price target is $15.85, however this level could be exceeded.
Nanosonics (NAN) – Lifting our target
In our last update on the 25th of February 2021 we highlighted the proximity of the price to key support and the oversold momentum levels and discussed our high conviction that higher prices are likely to unfold in the near-term.
The stock has rebounded from its support and our first upside price target of $5.97 has now been reached.
An imperfect ascending triangle has formed on the daily chart over the past two months showing that buying interest is building up.
A subsequent break above static and dynamic resistance of $5.37 is likely and would confirm the bullish pattern. G
iven the improvement in the price structure over the past few months, we lift our medium-term upside price target from $6.68 to $7.20.
Any short-term share price weakness would provide another opportunity to buy the stock.
IRESS (IRE) – Ramping up momentum
The decline from the February 2020 high has lost momentum over the past year and the price has been trading sideways, fluctuating between $8.29 and $12.01.
The current short-term up swing broke above minor resistance of $9.71 suggesting that a small bottom is now in place. The first potential upside price target based on the breakout is $10.80.
Over the medium-term, levels to $11.50 are achievable. In the very short-term, the price is likely to experience a mild pull back to unwind its overbought RSI readings, which we see as an opportunity to buy the stock.
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