Technical Analysis: 26 April 2021

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
26 April 2021, 11:30 AM

Goodman Group (GMG) – Approaching resistance

The up trend from the March 2020 low has lost momentum over the past seven months and the price has been trading sideways fluctuating between $16.37 and $20.07.

The current short-term up swing is approaching its all-time high where initial resistance could arise.

The daily RSI and MACD indicators have reached overbought territory suggesting that a short-term pull back to unwind the daily overbought momentum conditions could unfold soon.

The weekly momentum indicators remain constructive at this point and a subsequent break above $20.07 is likely. The potential medium-term upside price target is $21.00.

JB Hi-Fi (JBH) – Short-term weakness

The up trend from the March 2020 low has lost momentum over the past eight months and the price has been trading sideways, fluctuating between $42.30 and $55.25.

The recent short-term up swing lost momentum around its previous all-time high and a small bearish descending triangle has formed over the past month.

Friday’s price action broke below minor support of $50.78 suggesting that further weakness is likely to unfold in the weeks ahead.

The potential short-term downside price target is $47.50. Over the medium-term, our view on the stock is neutral and we favor further consolidation in the months ahead.

Wesfarmers (WES) - Overbought

The up trend from the March 2020 low has lost momentum over the past three months and the price has been trading sideways, fluctuating between $49.01 and $56.40.

The current short-term up swing has re-visited its all-time high of $56.40 where initial selling pressure is likely to arise. The daily RSI and MACD indicators have reached overbought levels pointing to a likely short-term pull back.

A break below minor support of $54.89 would suggest that a short-term top is in place and likely trigger a pull back to $52.00.

Over the medium-term, our view on the stock is neutral and we favor further consolidation in the coming months.

ALS (ALQ) – Tracking well

The secondary up trend from the March 2020 low has lost momentum over the past few months and the price has been trading sideways, fluctuating between $9.15 and $11.69.

The recent short-term down swing has lost momentum and the price action has been consolidating within the boundaries of a bullish ascending triangle over the past month.

A break above minor resistance of $10.32 is highly likely in our view and could trigger a rally to $11.50 in the weeks ahead.

Overall, the price action and the momentum conditions remain constructive and we favor higher prices in the near-term. The current price levels present an opportunity to accumulate the stock.

De Grey Mining (DEG) – Lifting our target

In our last update on the 18th of March 2021 we discussed the likelihood of a new secondary up trend starting and recommended clients buy the stock.

A strong rally has unfolded over the past month and our price target of $1.40 has now been reached and exceeded. Friday’s price action posted a strong and bullish candle and broke above key resistance of $1.60.

The daily and weekly momentum indicators remain in a bull market range suggesting that higher price levels are likely to unfold in the medium to long-term.

The stock remains one of the best performing in the sector over the past two years and we favor further outperformance. Therefore, we lift our medium-term upside price target to $1.80.

Find out more

Morgans clients can login to view all recent technical analysis on companies we cover by browsing the research section and filtering by 'technical analysis' in the Market Updates section. 

If you would like access or more information, please contact your adviser or nearest Morgans office. 

Request a call  Find local branch

Need access to our research?

You are also welcome to start a two-week trial of our online platform, which provides access to detailed market analysis and insights, provided by our award-winning research team

Create trial account 

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.


  • Print this page
  • Copy Link