Technical Analysis: 6 April 2021

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
06 April 2021, 11:00 AM

Afterpay Touch (APT) - Buy

After reaching a record high of $160.05 in February 2021 and overbought and diverging momentum levels, a pull back to unwind the overbought momentum conditions took place.

The current pull back has retraced close to its previous low of $89.27 and an equal low appears to be forming over the past two weeks.

While at this point, there is not clear sign the correction is complete, the equal low shows that buying interest is starting to build up.

The RSI and the MACD indicators have reached oversold territory pointing to a likely rebound in the short-term.

Given the proximity to its previous support and the oversold daily momentum readings, we are comfortable to buy the stock around current price levels. The potential upside price target is in the range between $120.00 and $125.00.

Alliance Aviation Services (AQZ) – Double Blessed Buy

AQZ has been trading in a consistent secondary up trend since March 2020 which is still firmly intact.

The current pull back has lost momentum over the past week and the price has been consolidating within the boundaries of a small bullish ascending triangle.

Last week’s price action broke above minor resistance of $4.05 suggesting that the correction is likely to be over. The MACD indicator has reached oversold levels suggesting that the price is likely to rebound in the short-term.

The RSI indicator turned up from oversold territory pointing to a likely rally in the weeks ahead.

The first potential upside price target is $4.40 followed by $4.80. We see the current share price weakness as an opportunity to buy the stock.

Volpara (VHT) – Bullish breakout

VHT has been trading sideways over the past year fluctuating between $1.18 and $1.72. The current short-term down swing has lost momentum over the past three weeks and a higher low appears to be forming on the daily chart.

The short-term down trend line has been broken upwards last week suggesting that higher prices are likely to unfold in the weeks ahead.

The MACD and the RSI indicators have turned higher from oversold levels showing that the price is likely to rebound in the short-term.

The first potential upside price target is $1.50 followed by $1.70. We see the current price levels as attractive to buy the stock.

WiseTech Global (WTC) - Buy

The secondary up trend from the March 2020 low has lost momentum over the past six months and the price has been trading sideways, fluctuating between $25.00 and $34.45.

The recent down swing has lost momentum over the past month and the price has been in the process of building a small base.

Last week’s price action broke above minor resistance of $28.90 suggesting that the pull back is likely to be over and that the price could rally in the short-term.

The potential upside price target is in the range between $33.00 and $34.00. Given the completed bullish breakout, we see the current price levels presenting an opportunity to buy the stock.

Scentre Group (SCG) - Accumulate

SCG has been trading in a slow but steady secondary up trend since March 2020 which is still technically intact.

The up trend has lost momentum over the past five months and the price has been trading sideways, fluctuating between $2.62 and $3.13.

The RSI indicator remains firmly in its bull market range and has approached oversold levels suggesting that higher prices are likely to unfold in months ahead.

A higher low appears to be forming within the trading range showing that buying interest is building up. This suggests that an upward breakout from the consolidation is likely to occur.

The first potential upside price target is $3.10, however levels to $3.30 appear achievable over the medium-term.

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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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