Technical Analysis: 22 April 2021

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
22 April 2021, 12:00 PM

Pact Group (PGH) - Overbought

PGH has been trading in a strong secondary up trend since March 2020 which is still technically intact. The current price action is approaching its key resistance of $4.10 where selling pressure is likely to arise.

The weekly RSI and MACD indicators have reached overbought territory suggesting that the up trend is likely to take a breather soon.

A bearish divergence between the price and the daily RSI indicator has formed over the past month showing the momentum is deteriorating.

Although, at this juncture in time there is no reversal signal in sight, given the proximity to key resistance and the overbought weekly and deteriorating daily momentum conditions, we are of the view that the near-term upside from here is likely to be limited.

Adairs (ADH) – Lifting our target

In our last update on the 15th of March 2021 we discussed the likelihood of the price trading higher and recommended clients buy the stock.

A strong rally has unfolded over the past week and our upside price target of $4.40 has been reached and exceeded.

The current up swing decisively broke above key resistance of $4.45 and has confirmed a large ascending triangle.

The pattern has bullish implications and suggests that higher price levels are likely to unfold over the medium-term. The new potential upside price target based on the breakout is $5.86.

In the short-term, the price is likely to experience a pull back as the momentum indicators have reached overbought levels. Such potential short-term share price weakness would provide an opportunity to add to positions.

Generation Development Group (GDG) – Lifting our target

In our last update on the 15th of March 2021 we discussed the high probability of the price breaking above resistance of $0.72 and recommended clients buy the stock.

A strong rally has unfolded over the past month and our initial upside price target of $0.85 has now been reached and exceeded.

The current up swing breached its key resistance of $0.89 showing that buying interest is building up.

A sustained breakout above this level will have bullish implication over the long-term as it will confirm a large bottom reversal pattern on the weekly chart.

While in the short-term the price may experience a pull back soon to unwind its overbought weekly and daily momentum conditions, over the long-term levels to $1.07 are achievable.  

Data#3 (DTL) – Second target reached

In our last update on the 15th of March 2021 we discussed number of bullish developments on the chart and highlighted our conviction that buying interest is likely to start building up.

A strong rally has unfolded over the past month and our second upside price target of $6.00 has now been reached. The current up swing is approaching resistance of $6.23 where initial selling pressure is likely to arise.

The RSI and the MACD indicators have reached overbought territory suggesting that the price is likely to pull back soon.

Over the medium-term, we continue to like the stock and we see such potential short-term share price weakness as an opportunity to buy the stock. Our medium-term upside price target of $7.00 remains unchanged.

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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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