Technical Analysis: 30 April 2021
About the author:
- Author name:
- By Violeta Todorova
- Job title:
- Former Senior Technical Analyst
- Date posted:
- 30 April 2021, 4:30 PM
Karoon Energy (KAR) – Lifting our target
In our last update on the 8th of April 2021 we highlighted that dynamic support around $1.02 is likely to attract renewed buying interest and the price is likely to rebound in the short-term.
The stock rallied over the past three weeks and our first upside price target of $1.25 has been reached. Thursday’s price action decisively broke above its previous resistance of $1.21 confirming an imperfect ascending triangle.
The pattern has bullish implications and suggests that higher prices are likely to unfold in the months ahead.
The RSI indicator remains firmly in its bull market range showing that momentum is still strong. Therefore, we lift our medium-term price target from $1.40 to $1.50.
Pinnacle Investment Mgmt (PNI) – Bullish breakout
PNI has been trading in a strong up trend since March 2020 which is still technically intact. The up trend has lost momentum over the past two months and the price has been trading sideways, fluctuating between $8.41 and $10.13.
The current short-term up swing broke above its key resistance suggesting that the up trend is likely to extend further in the coming months.
The RSI indicator remains firmly in its bull market range supporting the positive outlook for the stock over the medium-term. The potential upside price target based on the breakout is $12.00.
Mainfreight (MFT) – Bullish breakout
The strong up trend from the March 2020 low has lost momentum over the past four months and the price has been trading sideways, fluctuating between $64.85 and $70.00.
The current up swing broke above its key resistance suggesting that the secondary up trend is likely to continue.
The daily RSI indicator remains firmly in its bull market range at this point, supporting the positive outlook for the stock.
The first potential upside price target based on the breakout is $75.15, however higher prices are likely over the long-term.
Reliance Worldwide (RWC) – Bullish breakout
RWC has been trading in a strong secondary up trend since March 2020 which is still firmly intact.
The current up swing broke above a band of previous key resistance between $4.94 and $5.10 which is a very encouraging development on the weekly chart.
On the daily chart we have a confirmation of an imperfect rectangle pattern suggesting the up trend is likely to continue. The daily and weekly momentum conditions are constructive, supporting the positive outlook for the stock.
The first potential upside price target based on the breakout is $5.60. Over the long-term, levels to $6.00 appear easily achievable.
Redbubble (RBL) - Oversold
After posting a record high of $7.35 in January 2021 and overbought and diverging momentum conditions, a secondary down trend took place.
The current price action declined to its previous support of $3.83 where initial buying interest is likely to arise. The daily RSI indicator reached strongly oversold levels and broke below its bull market range.
The current down swing retraced to its 50.00% Fibonacci retracement ratio where initial support is likely to hold.
Despite the obvious deterioration in the daily momentum conditions, given the proximity to previous key support coinciding with a Fibonacci retracement ratio, we are of the view that downside momentum is likely to slow down and the current decline is likely to be arrested soon.
We see a possibility of a bounce in the short-term, which is likely to be part of a larger consolidation in the coming months.
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.