Technical Analysis: 25 February 2021

About the author:

Violeta Todorova
Author name:
By Violeta Todorova
Job title:
Senior Technical Analyst
Date posted:
25 February 2021, 5:00 PM

Coles Group (COL) – Double Blessed Buy

The primary up trend from the February 2019 low has lost momentum over the past six months and the price has been trading sideways.

The current down swing broke below support of $16.73 and is approaching key primary support of $14.95 where strong buying interest is likely to arise.

The RSI and the MACD indicators have reached strongly oversold levels suggesting that the price is likely to bounce soon.

The first potential upside price target is $17.50, however over the long-term higher price levels are achievable.

Given the proximity to key support and the oversold momentum conditions, we see the current share price weakness as an opportunity to buy the stock.

Nanosonics (NAN) – Double Blessed Buy

In our last update on the 21st of December 2020 we discussed the strongly overbought nature of the stock and recommended active traders use the share price strength to lighten positions.

The price experienced a steep decline over the past two months, retracing to its previous key support of $5.01 where strong buying interest is likely to arise.

The RSI and the MACD indicators have reached oversold territory suggesting that the price is likely to rebound from here.

Given the proximity to key support and the strongly oversold daily momentum readings, we have a high conviction that the price is likely to rebound in the short-term and recommend clients use the current share price weakness as a buying opportunity.

The first potential upside price target is $5.97 followed by $6.68 over the medium-term.

Jumbo Interactive (JIN) - Accumulate

The slow but steady secondary up trend from the March 2020 low has lost momentum over the past two months and the price has been trading sideways, fluctuating between $13.31 and $15.82.

The current short-term down swing has retraced to its previous support where buying interest is likely to arise.

The RSI and the stochastic indicators have approached oversold levels suggesting that the price is likely to bounce in the short-term.

The first potential upside price target is $15.80, however over the medium-term levels to $17.50 appear achievable.

We see the current price levels as attractive to accumulate the stock.

Lendlease Group (LLC) – Heading higher

LLC has been trading in a mildly sloping up trend channel since March 2020 which is still technically intact.

The recent down swing has retraced to its medium-term up trend line crossing at $11.80 where support appears solid and is likely to hold.

The RSI indicator completed and confirmed a bottom reversal pattern from oversold territory, suggesting that the correction is likely to be over and that higher prices are likely to unfold in the coming months.

The potential medium-term upside price target is $15.50. Over the longterm, higher price levels appear easily achievable.

NEXTDC (NXT) – Double Blessed Buy

The primary up trend from the August 2019 low has lost momentum over the past three months and the price pulled back to take a breather.

The current short-term down swing has retraced to its previous multiple band of support between $10.63 and $11.15 where strong buying interest is likely to arise.

The RSI and the stochastic indicators have reached oversold levels suggesting that the price is likely to bounce from here. The first potential upside price target is $12.90, followed by $14.00 over the medium-term.

The current share price weakness presents a great opportunity for active traders and long-term investors to buy the stock.

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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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